Tips for Homeowners Nearing Foreclosure
Some homeowners who are three months to a year behind on their mortgages have chosen to leave their homes altogether. Anyone can walk away from a house — even a retired baseball great, Jose Canseco, who abandoned his Encino (Calif.) property earlier this year.
But attractive as "just walking away" may seem to a homeowner at the end of his or her financial tether, leaving a property to the mortgage-holder or other interested parties carries a serious credit risk and significant legal responsibility.
It's a good idea to call the person you may least want to talk to: The lender. Cash-strapped homeowners can get forbearance from their lender if they act early. This agreement reduces or suspends the mortgage payment for a limited time, giving homeowners a temporary reprieve.
We've said this before, and we say it again now. Walking away from a mortgage severely damages your credit and is not a good solution. If you're in trouble, TALK TO YOUR LENDER!
