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Reynolds told us “We can’t sell it, we can’t refinance it, all the equity in it is now gone.”
A recent letter from the Butler County Auditor confirmed his worst fears. Reynolds discovered “We owe $52,000 more than the county is saying it’s worth.”
Like many other homeowners underwater in their mortgages, Reynolds is considering walking away.
“We don’t know if we should stay and keep paying on the house, or walk away from it,” he said.
Walk Away?
Letting the house slip into foreclosure — technically, Strategic Default — is the easiest option. But it’s also a bad one, according to SmartMoney Magazine and most lenders.
Mortgage lender Ed Hensley from Cincinnati’s First Financial Bank says not only will you destroy your credit, but the lender may be able to sue you.
Hensley says, “If you walk away from the property, there are consequences to that action.” He says there are three better options.
Read More: http://www.wcpo.com/content/news/localshows/dontwasteyourmoney/story/Underwater-In-Your-Mortgage-What-You-Can-Do/sCr8BeLDE0arD6psxu7lRQ.cspx
