Market experts say that, while lenders have the right to sue [borrowers who can't make mortgage payments] for breach of contract, most will not pursue charges against "indigent" individuals unless they abandon mortgage payments for business interests.
Barnard [a debtor who wants to abandon his home] and some financial planners say that, in certain cases, giving up is the only option.
It can take a year or longer for a bank to seize a home once the owner ceases payments. While a foreclosure hurts credit, owners do not have to make mortgage payments as the process unfolds and can use that saved money to start over.
Tuesday, March 17, 2009
Indigent homeowner strategy
An article issued by Reuters called "Owners skulking away from 'underwater' U.S. homes" includes the following bit of advice: