Good day everyone,
has anyone heard or used the Just Walk Away program, they are suppose to help you walk away from your house and keep it off your credit. This sounds to good to be true. If it was thay easy why isn’t everybody doing this. They are out west but are expanding to other states.
Thanks :beer
They cannot keep anything off your credit. They just enlighted you on how serious a foreclosure or late payments on your credit will affect you. If you walk away, you are still liable for unpaid debts depending on the type of mortgage/loans you have on the property.
You WILL have a foreclosure on your credit, but they say you need only wait 2 years and you’ll be able to get a home loan again (this is highly speculative on their part, based on a mortgage market that does not exist today, nor is likely to exist in 2 years).
Hi Detroit
I have never heard of a program like this that saves your credit, but I have heard of a company that offers their “services” for $1000. Basically what they do is send a letter to your lender to try and get them to stop harassing you. They also put you in touch with local lawyers and accountants and give you advice on how to best handle the situation (i.e., living in your house for almost a year rent free).
Not exactly a service worthy of $1000 when you can’t even pay your mortgage if you ask me.
You can do a Deed in Lieu. It still affects your credit but for shorter periods. The bank has to agree to it also.
sounds like just another scam to me. How do you walk away from a house and get your lender to NOT report it on your credit??? Ridiculous, that’s the POINT OF CREDIT! Once you blow it, you get nailed for years. Otherwise people would walk from debt all the time and lenders wouldn’t loan money…what a crock.
Sounds to me like someone is trying to sell you a short sale. That’s assuming the bank agrees to the short sale.
You will have late payments that will seriously affect your credit, but it is possible to avoid the foreclosure on your record.
Also, depending on when you purchased the property, I believe there is some legislation that just came out that will let you get out of the 1099 the lenders will serve to you on the difference between what is owed and what the home sold for.
Contact an attorney if you have legal questions.
For primary residence debt forgiveness due to short sale or foreclosure,
“no longer taxable as income for years 2007 thru 2009.”