Dear Reader,
Statistics show that over 1,000,000 people where foreclosed on in 2007.
Experts predict that even more will be foreclosed on in 2008.
What are these people doing?
Many are just walking away. Thinking that once they turn over the keys the bank will do what it has to do, take possession of the house, and that will be that.
Oh, people of little knowledge.
Its all about the contract.
Here’s a definition of foreclosure for Black’s Law Dictionary:
Procedure by which mortgaged property is sold on default of mortgagor in satisfaction of mortgage debt. If proceeds from sale fail to pay debt in full, mortgagee creditor may obtain a Deficiency judgment.
Foreclosure is just legal mumbo-jumbo for repossessing the collateral – the house.
You’ve still got the contract. You still owe all the money, with interest.
Once the house is repossessed it will be sold. When and for how much? Only time will tell.
But, based on what I’ve been reading, it will take a long time for all the reposes to be sold. And, with the price of houses going down, most of these houses will be re-sold for a lot less than what is owed.
Will the banks come after people?
You have two things to consider. These banks create money out of thin air. They lend this funny money to you, with interest. And they still end up losing money, go figure. These bankers are paid a lot of money. Do you think they’ll even hesitate to come after you if it means saving their high paying job?
Then, you’ve got all those collection attorneys. They’ve got to be suing and stealing from someone to earn a living. It might as well be you.
Here’s what you need to consider. If you just walk away, two, three, five, years from now you could end up being sued for a lot of money. You’ll either have to defend yourself, hire an attorney, or get your wages garnished, you property stolen, and what ever else they can do to collect the money.
Worst of all, you ‘ll being paying for a house you don’t live in and haven’t for along time. Sort of like alimony: the screwing you get for the screwing you got?
Not a real bright thing to do.
Or, you could stand up and fight them now.
What do you have to lose? Pretty much nothing.
What do you have to gain?
During the battle all you have to pay is property taxes (you don’t want govco to come and evict you) and utilities. No mortgage payments. Its like living rent free.
The lender or bond holder may agree to waive any deficiency amount. You actually walk away completely free and clear.
The lender or bond holder may negotiate new terms, reduce the amount of the loan and interest rates so you can now afford the house.
And if you’re real committed, you might end up winning, which, as a matter of law, you should, and you’ll own your house free and clear in a couple of years.
Not a bad deal…
What will it be? Now or later?