Is it best to walk away if I can’t pay my mortgage?
When it comes to a potential foreclosure, everyone’s situation is different, which makes answering this question difficult. When you’ve come to the point of inability to pay your mortgage, it’s usually best to speak with an experienced foreclosure defense attorney to discuss the options available to you based on your specific situation and laws in your state.
Walking away from a mortgage – aka defaulting to foreclosure – is sometimes the best option for those struggling with financial stability or simply facing an economic crisis. However, it’s important to discuss all available options and implications before committing to proceed with a foreclosure.
Implications of walking away from a mortgage
- Credit Score
After defaulting on your mortgage, your credit score will take a tremendous hit. The damage to your credit will usually affect your ability to take out other personal loans and credit cards for anywhere between 7 – 10 years.
- Inability to get new mortgages
Despite being denied for smaller personal loans, following a foreclosure, you may be unable to be approved for a new mortgage for many years as well.
- Debt after the foreclosure sale
After the sale of your home, the difference between the sale price and the amount left on your mortgage – the deficiency – may be your responsibility.
During Foreclosure Mediation, or while speaking with a foreclosure defense attorney, you will likely be presented with a number of alternatives to foreclosure. Banks and lenders rarely want to proceed with the time, energy, and cost associated with a foreclosure and will usually attempt to avoid it.
If you are having trouble meeting your mortgage payments, it’s best to speak with a foreclosure defense attorney as soon as possible. Even if you ultimately decided to walk away from the mortgage, the earlier in the process you reach out, the more options you usually have available to choose from. Contact our office today to speak with an experienced foreclosure defense attorney. To set up a consultation call (702) 998-1188, email firstname.lastname@example.org, or schedule a consultation online.
For more information on the foreclosure process, alternatives to foreclosure, and other topics relating to foreclosure, check out our Foreclosure Defense blog, or Foreclosure Defense TV playlist on Youtube.