That’s a question many homeowners are asking themselves these days. Do I walk away from my home or stay and stick it out to try and save my credit?
Nearly 1 in 3 homeowners in the Tampa Bay area are facing foreclosure. That means if affects everyone. If you’re not facing foreclosure yourself, then maybe your neighbor or someone in your neighborhood is. This affects the value of your home.
Both sides can be argued of this question. But is it really worth the risk of destroying your credit for many years to come if you are able to stick it out? Some people don’t have any other options. With unemployment rising, adjustable rates rising and trying to support your family, some people may not have any other option but to walk away. But if you can work with your bank to try and get your loan modified and interest rate lowered, then walking away should be your last option. If you are able to continue to make your mortgage payments, then it may be best to stick it out for the sake of saving your credit.
There was an article recently published in The Wall Street Journal that gave their opinion on this subject. Two sentences in the article caught my attention. “Whether we like it or not, walking away from debts is as American as apple pie. Companies file for bankruptcy all the time, and their lenders eat the losses.”
What are your thoughts?