Mortgage Walker
According to their web site, It is the objective of You Walk Away, LLC to empower homeowners who purchased their homes at the peak of the real estate market.
Mortgage Walker
Definition: One who abandons their home and home loan; voluntarily surrendering their home to the lender
or could also be defined as someone who does not repay their debit, but each homeowner has their own unique story and heartbreak.
It is devastating to loose a home. So, let's try not to make judgments; there is a lot of blame to go around.
Help, I owe more than my home is worth. Of course, there's a price. Mortgage walkers will take a hit to their personal credit rating. Yet this once-forbidding punishment may be discounted. That's because, just as when markets change their behavior, people change, when people change their behavior, markets change also.
Categories: All about Money, Foreclosures, Lenders, A Seller's Perspective
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5/11/2008 7:46 PM
Los Angeles Real Estate Blog wrote:
We have foreclosures in our listing inventory. The foreclosures are a result of homeowners walking away from their financial obligation to the lender. The bank is not being paid and the bank forecloses. Not all of these owners are “voluntarily” walking away, but if they aren’t paying their loan, what do you call it? Both the New York Times and the Los Angeles Times are out today with lengthy stories questioning whether the much-discussed "walking away" trend -- you might also call it voluntary foreclosure -- is a real event or a suburban myth. Both ... -
5/29/2008 7:33 AM
Los Angeles Real Estate Blog wrote:
I had previously posted about mortgage walking and a firm which assisted homeowners with walking away from their mortgage obligation– I remain uncertain as to why you need to pay someone in order to stop making payments to your lender....RealtyCrisis appears to be another entity that a troubled homeowner can pay to assist them in walking away from their mortgage. According to their web site: “Wilshire purchases, takes title to your property and assumes the loan(s) subject to your original agreement. IT'S REALLY THAT SIMPLE!”But wait… The loan is still in the homeowner’s name, unless the lender ...
if the owner walks, bank sells for $165,000 less than is owed, does the bank then come after the owner for the $165,000 - even attaching wages and retirement accounts?
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Sherry,
Assuming you live in California.
I am not an attorney, (I have to tell you that
Purchase money loans have NO recourse - the bank eats it
Refinances, home equity loans could have recourse (deficiency judgment) BUT I have never heard of a bank going after a "regular" person.
AND my understanding is that if they (bank) wants to go after you, the foreclosure process is different (longer and more complicated). Hope that helps & best of luck to you.
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We are planning to buy a new home next year, would you pleasure suggest me the names or web URL of some of the most recognized home loan financial institutions, in terms of mortgage and home loans.
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lenders that I or my clients recommend, click here:
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One of the interesting disconnects in the real estate and home finance business is that people are very willing to go online to do research about a new home or loan, but when it comes time to transact they choose to do it with a human hand-holder.
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I am amazed that anyone would say it is not a a borrower's fault to lie. Whose fault is it and does that mean you abrogate a person's responsibility to tell the truth only if there is no possibility of getting caught? Are you then also going to start complaining when costs increase at your local bank because they have to make up for all of the millions of dollars they have lost due to someone first lying and then deciding not to honor their word on a promissory note to repay simply because they don't like the neighborhood anymore. Remember, this is not about those who are truly experiencing hardship and do not fall in this category, but it is about those who flit around expecting everyone else to make sure they don't lie or keep their word and if they can get away with it, they do, and then have people go tell them, "it isn't your fault." Yes, there is blame and plenty to go around. But let's please place it where it belongs in each circumstance.
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Why would anyone create a loan that didn't verify income? If I were lending my money, I would want to determine that someone had the capacity (income) and character (credit) to pay the loan back. I would not go down to where the homeless hang out & lend money to alcoholics. The banks invented these loans knowing that people would lie; many of these people also had no down payment and poor credit.
When I approved loans in the 80's they also had the "no income verification" loan - or "stated income" but the requirement was 30% down and good credit, then it went to 20% down but good credit was a must.
Now factor in that the bank set monthly payments that didn't amortize the loan and the loan balance increased. Who would you blame? If I bring naked women to my house and put them in my bed with my husband ; I am not going to blame my husband for anything that would happen next.
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Hmm i uderstand but want to know that...
Are you then also going to start complaining when costs increase at your local bank because they have to make up for all of the millions of dollars they have lost due to someone first lying and then deciding not to honor their word on a promissory note to repay simply because they don't like the neighborhood anymore.
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hi,
i just wanted to say how much i enjoy reading your blog. in a world full of spin, it's nice to get some fact-based analysis.
keep up the good work.
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Great blog. It is terrible what has happened to our country during this down turn but, we do not learn from it and what caused this mess then, we will have to experience it again.
Government is the problem. When the era of government intrusion on the "free enterprise is over, that is when human nature will be allowed to correct the flaws in our system.
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You don’t need statistics to tell you that Americans are anxious about their finances. Keep the worry out of mortgages by following these three suggestions.Americans are worried. According to a recent report by the Rockefeller Foundation,93 percent of households suffered a minimum of one “substantial economic shock”between March 2008 and September 2009. And, in the summer of 2010, more than 70percent of Americans were worried about losing their jobs.
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