Walking Away From Mortgage: What to Consider

walking away from mortgageWalking away from your mortgage has become a trend as more homeowners find themselves underwater -- that is, their home is worth less than their mortgage. But as Ann Brenoff explains, at our sister site, WalletPop.com, you need to know the consequences of strategically defaulting before making the leap.

As home values slip below what people owe on their mortgages, people are strategically defaulting on their loans. Why? Because in some cases, it makes good business sense to walk away from a bad investment -- just like the banks do all the time.

Of course banks like to beat their chests about how walking away from a mortgage will ruin your credit. Truth is, having good credit may be a luxury that no longer makes financial sense for your family -- right up there with taking vacations to Europe and leasing a new car every year.

We spoke to various mortgage and credit advisers, all of whom advised that walking away cavalierly from a financial loan obligation may be injurious to your financial health. But if you are going to do it, they quickly add, do so prepared:


Read more at WalletPop.com.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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bnorthplains

I'm beginning to think the only way to stop all this crazyness done by the BANKS , Is: to file a LAW SUITE against them !
Maybe if enough people do that, it will open their eye to see, Foreclosure is NOT the answer !
Working with the home owner, making it affordable to them, is ! In the long run they will still make their profit's !
And help END this horrible MESS we are in.................... housing is only the beginning
We need JOB'S..................... We can't continue to "support" other countries and let our own "AMERICA" fall !
WE, USA, seem to be behind all other countries, in many,many ways !!
LET'S help our USA before, commiting to help other countries ! Even though they may be our allies, we have to take care of our HOME LAND 1st, and make it top priorty .............
"Chairty begins at HOME"...................................

March 23 2011 at 2:01 PM Report abuse rate up rate down Reply