Should I walk away? Unfortunately not all real estate stories are funny, but some need to be told. I own a property management company and we have a tenant that "Walked Away" from their mortgage. Their attorney advised them that this was the best financial decision they could make at the time. I wasn't their agent when they bought this house, but this is the story that I was told.
They bought their house at the height of the market (for about $300,000). Their mortgage was about $2,400/month. It was going to adjust to a new and improved payment of much more. We had the identical home offered for rent at $1,200/month. Their attorney (and/or possibly financial advisor) advised them that they could "Walk Away" from their mortgage, move here and save the $1,200/month. The property was worth about $175,000 when they decided to do this. The attorney advised them that in five years when they are able to purchase again, they should have $75,000 (if they put the $1,200 in the bank each month) for a down payment and closing. The property most likely isn't going to be worth much more than it is now, and they should be able to buy the same house for much less money. On top of that, someone else is responsible for the repairs.
Is this the right decision for you? If you are thinking of this, please contact me. I will get you in touch with some free agencies that will help you make this very personal decision.
Contact Joan Lord with Horizon Realty to star in your "Episode."
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