Is It Possible To Walk Away From Your House?

**Teresa T** · 01-27-2009, 08:40 PM

My house is on the market. I can afford the payments. I put 20% down on this place. But the bottom line is, I can't stand to even be here.

If I gave it back to the bank, I'm assuming my excellent credit would be ruined. But I'm considering it if it won't sell in the next six months.

**brennasmom** · 01-27-2009, 08:42 PM

Can't stand to be there because....??? Have you thought about lowering the price to move it quicker (if anything is moving *quicker* these days?). Short sale?

**Debbie-cat** · 01-27-2009, 08:43 PM

I don't think it would be a good idea to walk away from it. You have money invested in it and it would be wasteful to throw that away. I don't understand the circumstances (in .. why you can't stand to be there) but it just seems that it wouldn't be a good idea to just leave it.

**Teresa T** · 01-27-2009, 08:49 PM

There are many reasons. But thanks for your replies. I'm also considering moving out to an apartment and then it could easily be shown. Right now I am doing appt. only due to my elderly cat. There is no lock box.

Renting and the house payment would be a stretch but I could swing it for a short time. I am willing to lower the price. I'd be happy just getting my 20% down back and to have this place out of my life.

**Debbie-cat** · 01-27-2009, 08:55 PM

I think that would be a wiser choice (getting an apartment to be able to show it easier) this way you should at least get something back (cheaper sale) for your troubles.

**Gardengal18** · 01-27-2009, 08:57 PM

I wouldn't just walk away from it. Foreclosure can RUIN your credit for years to come. and that is exactly what they will do with "jingle mail" i.e., sending the keys back to the bank.

Just a reminder - a lot of landlords who have rentals check Credit Reports these days. So do employers and in today's economy who knows when someone will have to find another job. Just a word from the wise.

**Teresa T** · 01-27-2009, 08:58 PM

Thank you Debbie-cat. It's something I'm going to discuss with my parents when my mother calls tomorrow. If this place doesn't sell in 6 months or so then I don't know what I'll do.

I know some people have carried two mortgages. I'd rather not get into a rent/mortgage situation but it could work for the short haul.

**Teresa T** · 01-27-2009, 08:59 PM

Originally Posted by Gardengal18

I wouldn't just walk away from it. Foreclosure can RUIN your credit for years to come. and that is exactly what they will do with "jingle mail" i.e., sending the keys back to the bank.

Just a reminder - a lot of landlords who have rentals check Credit Reports these days. So do employers and in today's economy who knows when someone will have to find another job. Just a word from the wise.

That is something to consider. Thanks.

**guest002** · 01-27-2009, 09:25 PM

We didn't sell our house before our move, but it is rented w/ a property mgmt company. It only took a few weeks to find tenants.

**brennasmom** · 01-27-2009, 09:35 PM

Could you rent it out possibly?

**rowdy35** · 01-27-2009, 10:54 PM

i would move into a really cheap apartment so it's easy to show without any appointments. tidy it up really nice and make it show good, smell good, etc. Lower the price again if you have to.

**Greebo** · 01-28-2009, 09:25 AM

A short sale would be a much better option for several reasons. You would hurt your credit, but far less than if you just walked away. More importantly, you would be keeping your word. You bought the house and made a commitment to pay.

Don't get hung up on the 20% equity you put down on it either. IF the value is gone, its gone. Lost value is like rent - you paid for a roof over your head. You got a roof, so you didn't "lose" in that regard any more than if you'd rented and never had a shot at equity.

**rainbowgc** · 01-28-2009, 12:39 PM

I think it would be a shame to lose your down payment. Since you are able to swing the payments i don't know why you want to give up on your home. So many people are desperately trying to stay in their house, I just can't understand what you are thinking. Maybe you just need to "clear" your house.
http://www.yogachicago.com/may08/housekeeping.shtml

**sabrelvssammy** · 01-28-2009, 01:30 PM

not to be the bearer of bad news but realisitically it could take you quite awhile to get the house sold...if you are truly miserable there you are doing yourself no favors by sticking around any longer than you have to...you are becoming a 'distressed' seller and buyers will jump all over you on that...you could take a beating on the sale.... on the other hand you DO not want to give it back to the bank...for alot of the reasons already stated here...

when we were trying to sell our house (just when the market started to turn) we were up against alot of obstacles...(we had over-improved for the neighborhood, house was built in 1874...why buy old when you can get new....price was in the upper range for the community...big house-huge upkeep, utilities, etc...) but i had put alot of hard work and love into that house and was not going to let someone 'take' it for nothing.... the alternative...rent it out... now i currently own 16 rental homes...so i know the downside of this idea...and MY house was not a RENTAL type of home.... but i put the word out..found a couple that wanted to rent a nice place for a short while...we made an agreement....month-to-month lease...they had to keep the place 'show-ready' and i would always give them at least 24 hrs notice before a showing....they would be allowed min 30 days notice if place sold (and realistically if can take alot longer than that sometimes...i know because i was a mtg loan officer in one of my past 'careers'....)

so they rented...and they actually stayed for 1.5 yrs... until we sold the house.... i made sure my agent and any agents that showed the place kept be informed of the condition of the property and i personally maintained the exterior landscaping (because we had tons of it and most tenants will NOT care for the landscaping no matter how good they are)they did cut the grass....plus this house was on the market and i had to keep it 'better' than my competition...it was a win-win situation for both of us....

another alternative is to sell it on contract but make sure you have an attorney draw up all your paperwork to cover ALL your bases...you'd be surprised what people can come up with....place an ad in the paper home for sale on contract..or rent to own.... a realtor could handle this part for you but then you would have to pay them a fee...but always get an attorney involved..... protect yourself !

you can contact me if you would want me to give you even more thoughts on any of this...either way...good luck to you !

**Teresa T** · 01-28-2009, 03:05 PM

Thanks again for your replies again everyone.

I just do feel a bit panicked. My house is actually on the lower scale of the price range. According to my agent priced very well and a great starter home in a good area. A down side is the only 2 bedroom but 2 bath at least.

I actually had a showing this AM, a young couple. My agent came also and she said they really liked the place. Will have to see. They stayed for a long, long time looking as I went and hid outside and then ran around the back when they came out the front door.

I never refinanced. I still have equity. I'm willing to take just about any offer. And leave. I can only have some hope. I would be happy with my 20% down back.