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You are correct that in some places renting can be more expensive than buying your own home. It is great to watch out for foreclosures but then again, you need to wait for quite some time before you get the approval.
The process is quite long and you are right in telling that a buyer should understand the process thoroughly. Those are great tips. I was a Realtor before everything went completely belly up and I always advised my Buyers to hire their own inspector to go over the property before they made an offer. Lots of my Buyers got some really fantastic deals buying foreclosures, and hopefully none of them were surprised after they got the keys.
If someone own a home that is under foreclosure and do not have plans on paying the back taxes, would it be in their best interest to give it to someone else who is willing to pay back taxes? So the giver will end up owing gift tax, or at least take a significant bite out of their estate tax exclusion. Family safety always comes first.
There are almost always shades of gray. Load More Comments. Disclaimer: The content on this site is for informational and entertainment purposes only and is not professional financial advice.
References to third party products, rates, and offers may change without notice. Please visit the referenced site for current information. Should you turn that car around, drive it back to the dealer's lot, and hand over the keys?
Probably not. You most likely made a commitment to repay a car loan. You'll pay it off one day and you'll trade it in for another car, putting the value of that car into your pocket. A home is not that different. There are plenty of good reasons to own one. You need a place to live and you made a promise to repay a loan.
Most people feel an ethical if not legal obligation to follow through on their word when at all possible. Of course, if you've suffered some major financial catastrophe and you simply cannot make the mortgage payments on your home, that's a horse of a different color. Maybe you can't avoid foreclosure. But if you're working and earning and your finances are on an even keel, you might want to take a deep breath and persevere.
Because markets move in cycles. Eventually, what goes down comes back up. Historically, real estate values appreciate over time. You have better alternatives than to " buy and bail. If you can no longer afford to make an increased mortgage payment due to an adjustable rate mortgage loan or you just really do want to walk away, you might look online for a solution. Unfortunately, there are no honest solutions online from walk-away profiteers. These are companies that prey on troubled borrowers' misfortunes and perpetuate the myth that walking away and going into foreclosure is a logical, foregone alternative.
But you don't need the help of an online company to do what you can do yourself. Don't line the pockets of opportunists. There are plenty of nonprofit organizations that can help you negotiate with your lender or offer other viable options and they don't charge you.
This compensation may impact how and where products appear on this site including, for example, the order in which they appear. View our full advertiser disclosure to learn more. My husband and I are sitting on a thirty year mortgage with twenty six years left to go.
We are thinking of just walking away from this mortgage and renting an apartment for a while until our credit clears up. What do you think? Is it morally wrong to walk away from a mortgage? I personally feel walking away from your agreements when you have the capacity to fulfill them is morally wrong, akin to lying.
If I were a lender, I would never lend to someone who walked away from a mortgage because I would simply view them as too big of a risk.
Aside from that moral concern, though, is it really a good financial choice? I think it can be, but it depends on the other choices that the person makes. First of all, walking away from a mortgage will drop your credit rating by points and it will take several years to recover. If the house payment is too expensive and you risk falling behind, but have not missed a payment yet, the Making Home Affordable refinance program may help.
This program allows you to refinance your home even if you owe more than it is currently worth. Fannie Mae or Freddie Mac must own your mortgage to qualify. If you have fallen behind on your payments, lenders are encouraged to permanently modify your loan in an attempt to help you stay in the home. If a modification is possible, the new loan payment will not exceed 31 percent of your gross monthly income, before taxes or any deductions. You will have a trial period to see how the new loan program works for your budget before the loan is permanently changed.
If you are considering walking away from your home because you owe more than the home is worth consider contacting your lender for a short sale. A short sale is when you sell the home for less than what is owed. List the property for sale if the lender suggests a short sale is possible.
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