A Foreclosure Alternative: Are There Legitimate Walk-Away Programs Out There?
A Foreclosure Alternative: Are There Legitimate Walk-Away Programs Out There
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Pay cuts and lay-offs made matters even worse by diminishing what little income these people have to allocate for their basic living expenses. It simply became much harder to keep up with the growing payments. Even refinancing was no longer a viable option as there is no more equity to tap into. When foreclosure seems to be the only plausible end to your mortgage situation, you have to ask "are there legitimate walk-away programs out there?
It really depends on the situation you are in. Some people still have the option to refinance. Some have other assets that they could sell in order to settle their loan obligations. Many people simply throw the towel in by leaving their homes and mailing in their house keys to their lenders. There simply is no sense in paying more for something that is valued considerably less than what you owe. The trouble with doing this is that the homeowner who walks away from his home and his loan obligation is technically still liable for his mortgage. Before you are even served a court order for a foreclosure, you have to find out what other options you can take and if are there legitimate walk-away programs out there.
Walk-away programs are increasingly becoming popular as these programs let homeowners completely severe their ties with their obligations and move on with their lives faster. By assigning their property to a walk-away real estate acquisition company, they are able to clear their obligations without much fuss. You do not have to put up the cash to settle anything. It is up to your walk-away company to negotiate with your lender's legal department in order to acquire your property. Even when these companies help you get away from the foreclosure proceedings, you cannot expect to simply walk-away without a mark. However, the damage to your credit would be less than what you would suffer had you let your property fall into foreclosure.