Should I walk away from my mortgage?
-By Michael Feicco with Dilbeck Realtors in Santa Clarita, CA
Some people have asked me, “should I walk away from my mortgage?”
My immediate response as a realtor is NO! NO! and NO! Before I explain why in detail the short answer is simply it’s better for your credit to short sale then to foreclose. You can possibly buy a home in 2 years instead of the 5-7 years.
Now the explanation-
A short sale means the sale of your home is sold for less than what you still owes on the mortgage. If the lender agrees to a short sale, the rest of your debt typically is forgiven. Now that is not a 100% guarantee with every case with every lender so check into that. That is something that happens more times then it doesn’t.
Lenders sometimes agree to the procedure in order to take a small loss and avoid the long and costly process of a foreclosure.
The short sale is a win win for everyone involved.
- The bank gets the home back into a payment and not sitting on their books and losing money each month.
- The buyer gets a good price
- The seller doesn’t get a bankruptcy on their record
And some banks are even giving money to help you move out if you go through with the short sale process.
If you have any questions or would like to discuss your personal options please contact me at:
Michael Feicco @ Dilbeck Realtors, 661-513-3263 or email me at firstname.lastname@example.org