The statistics are all over the place but what we do know is that the housing market is a mess. Some numbers we can sink our teeth into are that an estimated 9 million American households, or 10.3 percent of all single-family homes, owe more than their home is worth and 4.8 percent of home loans were in foreclosure, some due to intentional foreclosure or walk-away, or delinquent by 60 days or more at the end of last year. The bad news, as if that isn't enough: it isn't getting any better. The good news: Rachel LaMar and Cheryl Homes new book and website, Mortgage Walkaway Options and www.mortgagewalkawayoptions.com is just in time to help those who are "upside down".
I met Rachel through a good friend and ended up in a discussion about the current state of "the housing market". I was floored to hear about one company on the internet that is baiting people and asking the question, "What if you could live payment free for 8 months and walk away owing nothing?" To me, this is a horrible way to target desperate people in a really tough situation. Than I began to learn about the alternative many don't even know know about.
Rachel LaMar and Cheryl Holmes have over 45 years of combined experience in the fields of real estate, real estate law, legal research and writing. Their goal: Empower homeowners to take action, get educated about their options and move beyond the difficult time they are facing. So what are the top five things homeowners need to think about or consider before walking away?
1. Know all your choices/all possible available options
2. Credit implications of walking away vs. other option
3. Possible tax consequences of any option
4. Resources available to help make or implement smart choices
5. Moral and emotional impact
Rachel LaMar, J.D. practiced as a civil and real estate law attorney yet stepped into the real estate industry several years ago as a broker and agent. She is now a broker for a boutique real estate firm owned and operated by Cheryl Holmes. Cheryl has been in the real estate industry for over 40 years, and has owned her own real estate company for 7 years. This isn't the first time she has experienced a down/recessionary real estate market. With understanding and experience, these two savvy women are bringing options to those who feel they have none when it comes to their mortgage mess.
Millions of homeowners owe more to the bank than what their homes are worth. In other words they are "upside-down". More and more people are giving lip service to the idea of cutting their losses and leaving the keys under the mat as they "walk-away" and choose to intentionally foreclose on their homes. But do they really know their options or the consequences? Rachel and Cheryl want to be sure homeowners in trouble have all the facts before bailing, even those borrowers who feel as though they were taken for a ride by their lenders; talked or fooled into mortgages they couldn't afford.
"Finding out you had other viable options after you've given your home away is too late. Our primary goal is to present all choices and helpful resources available to foreclosure or walking away, because "walking away", or intentional foreclosure, has huge credit implications and, in many cases, people see it as a big moral dilemma as well," says Cheryl. "We offer education and present all the choices one may have in any given situation and focus on salvaging, if possible, without such severe consequences. In the case where there are no other alternatives available, as in the case where they waited too long to act, they can at least feel they have educated themselves and exhausted their options before foreclosure or intentional foreclosure," adds Rachel.
In their new book, Mortgage Walkaway Options and on their website, www.MortgageWalkawayOptions.com, Rachel and Cheryl present the most comprehensive, researched and gathered information in one place. This information is becoming more relevant daily as new lender programs and government legislation make their way to the surface. With constant updates on new legislation, resources and lender programs and for book purchasers on a link provided at the end of the book, consumers can continue to monitor the choices and make the best ones possible for their particular situations.
I know if I was in this situation I would want to know all the facts before walking away and living in coulda, shoulda, woulda land.
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Posted July 11, 2008 | 02:31 PM (EST)