Friday, February 03, 2012

What happens when you have to walk away from your home?

If you are living in a underwater mortgaged home, it can be a huge and very tough decision to walk away form your home. Each person must make a decision that works for them morally and financially, but also each person must face reality with a bold & realistic attitude as well. Alternatives to a short sale is a home loan modification as well, but those are many times unsuccessful. Weigh your options carefully & don't make the decision too hastily either. Keep in mind that sometimes the best decisions are not the easiest decisions.

Check out this article from Reuters - Yahoo Finance.

  • Pros: Settle Debt, Move on with your life, Tax Free on the "income" you received thru the debt settlement at the moment,
  • Cons: 85-160 hit on your credit rating, Embarrassing, Higher interest rates when you borrow again.