Why get foreclosed on when you can “walk away?”

If you look at the demeanor on the faces of the people over at YouWalkAway.com, you might think that getting foreclosed on is downright enjoyable.  A walk through the park with your spouse and child, as it were.

It even seems a bit empowering.  You don’t get foreclosed on; you walk away.  Kind of like “Take this house and shove it.”

Who wouldn’t be enticed by the prospect of “[living] payment free for up to 8 months or more and [walking] away without owing a penny?”  It’s more like you can be kicked out once things are official (it doesn’t have to be 8 months) and you’ll not owe but no lender will entertain lending you money again for a while at anything close to a good interest rate.  That, and it’s likely that you’ll feel like a failure.  (But that doesn’t quite have the same ring to it.)

The sizzle they’re selling is a brief period of peace of mind and the prospects of a fairly quick recovery.  The steak is hand-holding through a process that can be done for free, with the end result being the same: a foreclosure on the credit record, and a couple hundred points or more off of the credit score for a while.

If foreclosure is the only option, then it’s the only option.  I’m all for paying someone to solve problems, but paying someone almost a thousand bucks to alleviate things temporarily doesn’t really seem like a good deal.  And how people can justify the expense when it’s already clear they can’t afford their housing doesn’t make much sense either.

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5 Comments

  1. You are right somethings there are no other options… I don’t think anyone should pay to have someone hold your hand walking away. I do think people should STRONGLY look at the other choices available to them before they do walk away.

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