“Don’t Worry…Just Walk Away from Your Mortgage.” NOT SO FAST
If I had a quarter for every time I heard a real estate agent say these words to a client, I would be rich. If you ever hear these words come from an agents mouth, you need to run as fast as you can, and don’t look back.
Today I was reading a very interesting article about mortgage companies sueing borrowers who walk away from thier upside-down mortgage or mortgages. Lenders are legally allowed to go after borrowers who strategically default, in the state of Virginia. Fannie May has begun to target these borrowers who don’t pay and will hold them legally responsible.
Yes, this means there is a good chance that if you skip out on your mortgage, you will have a lawsuit on your hands. Fannie Mae will also REFUSE to back mortgages in the future for these buyers who default.
You might hear reports that you will only have to wait two years to get another mortgage. Not true. There are reports that Fannie Mae will not back your mortgage for at least 7 years.
It’s so important to check your state laws and seek legal advise before going into default. If someone tells you something to good to be true about the foreclosure process, you can bet that it probably isn’t true and there could be consequences you are not aware of.