Archive for the ‘Loan Modification’ Category
Odds You May Just Walk Away From Your Home Loan
I have recently read an article which may surprise you. Not everyone who walks away from their home loan are actually in any kind of financial hardship. Many people, including some investors, seeing that home prices have plummeted have made the decision to walk away and find other accommodations. This may be the idea that it would take many years just to get to a break even level.
Here are some statistics for your review (these numbers come from Money magazine May 2010 issue).
Questi0n:
“Would you ever consider walking away from your home loan?”
- 42% said they never would
- 38% said only if they had to
- 16% said Yes
- 4% said they already have walked away.
This shows a potential 1 in 5 walking away due to today’s markets. That is a full 20% willing or have already walked away AND a potential additional 38% to come. That makes an almost 3 in 5 people walking away.
Some other statistics you may be afraid to hear which was also published in the same article.
- 26% of homeowners who defaulted said they could afford to maintain the payments.
Now another scary tactic if your credit score is vital for you is that if you maintain your payments it will be until 2015 before your home values may be equal to your current loan balance. This means only a 5 or so year wait (on average across the nation) before you will start seeing some equity again.
Thus, if you are the average homeowner, consider keeping your loan current and bare through these hard times. Real estate is cyclic and good times are just ahead of us. If you can get a loan modification then the light at the end of the tunnel will be a lot closer than not.
Kevin Dunlap at Trident Investments Group has been in real estate since 2002 and has owned multiple types of real estate. Creative forms of real estate investing is his forte and has helped many people get on the path of home ownership over the years.
