An article in today’s Wall Street Journal illustrates one increasingly common solution for homeowners who are in foreclosure or trapped in a home where they owe more than it is worth—just walk away from the home and rent a comparable (or better) home elsewhere.
There are indeed very real consequences to adopting such a strategy, but the bottom line for many homeowners is that these consequences (bad credit, a deficincy judgment, tax liability, etc.) far outweight the relief they feel after walking away from a home and situation that has troubled them for years.
Such a strategy is not without consequences and consumers should consult with an attorney, but many find that the benefits far outweigh the negative consequences in the long run. Although there may be a social/moral stigma attached to walking away, the article also describes potential long term larger good that can come from consumers shedding this debt….the increased disposable income will be spent in other areas of the economy thereby helping other sectors improve.
Contact Matt Weidner at www.mattweidnerlaw.com