Walking away from your home

Its not uncommon for people to throw their hands up and decide to walk away from their property. The fact that they can no longer afford the property along with the bombardment of having to deal with the Bank and everything else drives people to walk.

I met an owner this week and she explained to me that she went through the Loan Modification process and got approved for a Loan Modification but her payment was only reduced $100. She had been laid off and had very limited funds so that kind of reduction wouldn’t do much for her. So she told the bank to foreclose and keep the house and packed up and left the home fairly quickly after that.

BofA waited almost a year before they placed the property in default and initiated a foreclosure process. I came into contact with her and quickly realized that although she was done with it all that she didn’t know how the bank would formally foreclose. She also didn’t have good resources of information before making a decision to walk away from the property. I explained to her that I got in contact with her because her property was finally in foreclosure and she was a few weeks away from the scheduled auction date. I could likely get her some money in exchange for the property before the sale if my estimation on the property were correct. She thought it was to good to be true. It wasn’t and she’s very excited about the deal we entered into.

It’s becoming a lot more common then you think for people to consider walking away from their home even with equity in their property.