Feb
20
2008Stupid Mortgage Tricks: Voluntary Foreclosure
20
2008
Stuck owning a house worth less than your mortgage, and having trouble making the payments? Selling the house won’t really help, since it won’t pay back the mortgage. Why not try “voluntary foreclosure?” Of course, you lose the house, but if you play your cards right you can actually stay in your house for 8 months or so, payment free, on top of not having to pay back the mortgage.
Obviously, foreclosure is often a drawn out process, due to laws usually designed to protect the homeowner. But a company called You Walk Away sells a $995 “kit” to help you intentionally complicate things for the mortgagor - extending your free ride as long as possible. They will then supposedly help clean up your credit rating.
Legal? Apparently. Unethical? Oh HELL yes. But the mortgage industry doesn’t exactly have a spotless ethics record, either.