In this wacky real estate market, new things pop up all the time. One of the recent trends catching on is for homeowners to literally walk away from their mortgage. These are homeowners who decide to stop paying their mortgage and remain in their home until their lender forecloses.
We will say right up front: We don’t condone this.
In fact, if you don’t have to move and you are not in financial difficulty, the best thing to do is sit tight and wait until the market is more on your side.
Still, we’ve seen our fair share of frustrated homeowners ready to give up because they are severely upside-down on their mortgage or because they have tried to sell with no serious offers for months (in some cases, years!).
For you homeowners who have entertained the thought of walking away from your mortgage (even for just a fleeting moment), an attorney who is also a real estate broker has written a white paper worth reviewing on the pros and cons of walking away from your mortgage. It also lists some options to walking away.
