Long Island Foreclosure Lawyer: Walk Away Mortgage

What does it mean to walk away from a mortgage?

Being stuck with an underwater mortgage can be a frightening situation. You wish that it would just disappear, but it doesn't. If only it were as simple as mailing your keys back to a mortgage lender and walking away, freeing yourself from future mortgage payments and the fear of impending debt. Unfortunately, the situation is not that simple.

A popular term in times of mortgage crisis is called "jingle mail", in which a homeowner literally sends his or her keys back to a lender, stops payments, and walks away from the home. While this situation sounds feasible, the repercussions are unbelievably serious. Firstly, your credit report will take a gigantic hit that will last for seven years, or longer. Then, any missed loan payments will deteriorate your credit score, although it may bounce back someday in the future if no more loan payments are missed. On top of this, if a lender resells the property for less than what you originally paid, there is a risk that the bank will attempt to collect the deficiency in a judgment against you. Although this circumstance may or may not occur, there are great risks in foreclosure. Reasons that may contribute to a pursuit of deficiency may be damage done to the property (whether it was your fault or not) or other costs that were incurred in trying to resell the property after you are gone.

A Long Island foreclosure defense attorney is able to give you sound and practical advice before you consider walking away from a mortgage, especially when it comes to negotiating with your lender. Upon calmly discussing the issues and concerns with your lender, it may be possible to mutually turn the property over and avoiding a damaging foreclosure mark on your credit report (referred to as a deed in lieu of foreclosure ), or other recourse may be considered. If your desire to stay in your home outweighs the possibility of walking away, the bank may be able to restructure your loan to result in lower monthly payments, and having a high quality, aggressive negotiator on your side can make all the difference.

Walk Away Mortgage Lawyer in Long Island, NY

When considering a life-altering decision, Blutter & Blutter provides their clients with zealous and assertive representation. The firm is prepared to answer each and every one of the questions you might have concerning your foreclosure. When you are being faced with mortgage problems, protect yourself with exceptional legal representation and personal individual service.

Contact a Long Island foreclosure lawyer and ensure your future.