Can’t sell home due to declining property values and need to relocate, would you "walk away" from home?

February 6th, 2010 | by admin |

My wife and I are just thinking about letting it go "back to the bank". I know this is not normal, although, we feel it is our only way to sell this thing.

Would I? No, I am an honest person and would not dream of ripping anyone off, including a bank.

I would do exactly what I am doing, I am holding all of my properties, I have not sold a single one in over a year. Other then a vacent lot, but I got full asking price.

  1. 6 Responses to “Can’t sell home due to declining property values and need to relocate, would you "walk away" from home?”

  2. By MAR2009 on Feb 6, 2010 | Reply

    why don’t you just rent it out? That would make more sense.
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  3. By Milton on Feb 6, 2010 | Reply

    The issue are:

    How much do you own versus how much do you owe? If there is enough equity to pay off the bank or close to it, you can short sell. many banks will settle for a high percentage of the loan and let you off the hook. In these times, they would rather do that then foreclose because they would then owe the taxes. Foreclosure means ownership change. Short sale means you own it until it sells and the bank agrees to take less than the full amount of the mortgage.

    Will the bank let you off the hook? Sometimes the bank will hard-nose and if you have a good job, they will sue for the balance due after they foreclose. You could end up without the house and with a debt that would stop you from getting a new loan.

    Before you do anything, consult a lawyer. The few hundred dollars he will charge will be well worth it. He may even be able to negotiate with the bank.
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  4. By living star on Feb 6, 2010 | Reply

    I would rent it out.Do you have alot of equity on this home think before you do anything.Or you can rent to own the property.Becareful you need to have a clean credit to get a apt.or house.
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  5. By Realtoratheart on Feb 6, 2010 | Reply

    Thinking about it is ok, you need to research all of your options. BUT… don’t let it foreclose.

    Let’s be realistic, it’s the price and condition that matter to buyers. There are so few of them today, that you have to practically give it away. So what if you have to pay a few thousand dollars at closing, reduce the price and make it sell! OR sell on a contract for deed. OR Rent it out. You have some choices. But do not think that walking away from it will solve your problem, it will in fact create a whole host of other issues that will follow you for up to 10 years. Example; a foreclosure impacts your whole financial picture, from getting jobs, to your credit cards. I know from experience.

    You need to think outside the box and do whatever is necessary to accommodate your move and not ruin your credit.
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  6. By Landlord on Feb 6, 2010 | Reply

    Would I? No, I am an honest person and would not dream of ripping anyone off, including a bank.

    I would do exactly what I am doing, I am holding all of my properties, I have not sold a single one in over a year. Other then a vacent lot, but I got full asking price.
    References :

  7. By MadMan on Feb 6, 2010 | Reply

    The owners of the Stuyvesant/Peter Cooper building in New York have done just the same thing. If a multi-billion dollar investment company can do this, why can’t you? Now, remember, some states are recourse so you might not be able to walk away. Also, if you are not insolvent when you do this, you might owe taxes on the loss to the mortgage lender.
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