Shiny happy people throw in the towel
By Jessica Swesey, Wednesday, January 30, 2008.Bookmarking Sites
We recently started to catch hints that troubled homeowners may not be that bothered by the idea of picking up and walking away from their mortgages. The Calculated Risk blog noted it in a post that took quotes from top lending executives, and the "60 Minutes" segment that aired last weekend picked up on this while interviewing a couple facing foreclosure.
The stigma generally associated with losing one's home apparantly isn't as dark as it used to be.
Now we hear of a California company called "You Walk Away," which as you might've guessed is set up to help homeowners walk away from their mortgages, and offers to sell them a $1,195 protection plan and kit for fleeing the coop. The company says it's not offering to buy people's houses or take over their mortgages, but instead "provides a service and legal information."
Hat tip to Jillayne Schlicke over at Rain City Guide for uncovering this. We haven't been able to check it out fully yet to see exactly what service and information they are offering, and consumers should be careful in choosing this type of help.
Schlicke, a real estate industry educator, recommends finding an attorney or visiting HUD.gov where you can connect with a housing counselor, among other reccomendations.
She says: "I recommend finding a lawyer in your city that specializes in consumer protection or real estate law and paying for a face-to-face meeting to discuss all your options. I will bet that in most cases, the cost of an attorney will be less expensive than the kit. Google your state's bar association to get started."
Schlicke also says that loan originators routinely give this advice away for free.
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Submitted by ja o on May 28, 2008 - 10:05am.
It's not the fine print that got them well not all of them. Lenders, brokers, agents, and the buyers them selves in one case or another were at fault. If I were going to lose my home i would be doing anything i can do reduce my monthly bills to pay the mortgage. Lower cell plan, no cable and get lower interest on my credit card with no fee balance transfers to keep costs down. Maybe even quickly do some landscaping, putting fresh paint on the walls and seeing if you can sell to break even or maybe even put a few grand in your pocket then buy something you can afford.