Yesterday, the Mortgage News Daily ran an article entitled “Stop Paying Your Mortgage and Walk Away?” It talked about a new company called You Walk Away, LLC that assists homeowners with the process of walking away from their homes, more specifically their mortgages. I have to applaud Mortgage News Daily for going against what this company is doing.
Where is our society going? We in the mortgage industry work our butts off putting people into the American Dream, helping them make wise financial decisions and as soon as the industry runs into some issues a company like You Walk Away, LLC comes along and profits from showing people how to ruin their credit by walking away from one of the best financial decisions they could’ve made. Wow!
I believe the recent efforts by the Federal Government to help struggling borrowers is the right thing to do. But to help people walk away from the biggest financial commitment in their lives, like this company is doing, is crazy. What happened to keeping your commitments? It used to be that if you were having trouble with finances and had to “rob Peter to pay Paul”, it was commonplace to float your credit cards for a month or two until you got back on your feet. But you never, ever stopped paying your mortgage.
I know we’re not living in the most ethical times (evidenced again today by the resignation of New York State’s governor) but c’mon, someone actually is showing people how to mail their keys back to their lenders, and it’s legal? It just irks me to think that our business is being undermined like that. It’s like the owners of that company are saying, “Those crooked mortgage people put you into the house so give it back to them and let them deal with their screw-up.” The only problem is that the people who pay the almost $1,000 fee for this service are being put into a much worse off position.
Does anybody else feel the same way about this as I do?
Rich, great topic and I agree that walking away is reckless and irresponsible.
A short sale with full release of liability is meeting the lender halfway.
As someone sitting on the sidelines during the explosion of subprime loans, and watching people that could not normally afford to move into their own home buy big houses, I have to say I am a bit torn. While I was shaking my head wondering how these people were going to be able to afford the payments, I did (for a second, anyway), wonder if I was not making a mistake by not pulling the trigger and buying a house. Unlike many who jumped in, I have great credit and money in the bank for a deposit–but I knew I would possibly be cutting it close each month if I actually purchased what I wanted. Unfortunately, I understand why it makes sense to walk away–and I also think it irresponsible. The problem is that buying a home is now becoming harder for many of us who were responsible–and not helping out those who weren’t isn’t really an option–it’s going to cost us more either way.
Unfortunately some people will not know better and will consider this a valid option, after all they are a “real” company doing business…..that muuust mean its ok.
Yes, I was stupid and paid this company, You Walk Away, LLC, $1000.00 and they did nothing for me it was such a waste. The contract stated is not statisfied can get a refund for 50% of fee paid and I am still fighting with them to get a refund. They are taking advantage of the situation and should be shut down.
Ethical? This is funny coming from a mortgage blog. The tea pot calling the kettle black. Why is it that it is unethical for families to make a “business” decision? Lenders made a “business” decision to screw everyone over and now your high morals should lock people down based on a moral one? The shunning should be on the brokers and financial institutions that caused this to happen. On top of that, have you considered Americans are being raped from both ends? Mortgage and taxes to rescue the same idiots that caused the problem. Stop imposing your morals on families that are truly in hardship due to an industry that has proven it has no morals. This is “business” and this Walk Away company is making a business decision on the inevitable result many families are facing. By the way, in their site I see they also assist in short sales. If it boils down to food on your family’s plate or in banks mouth. You’d be “morally” obligated to help your family NOT the bank. The banks didn’t feel “morally” obligated to give pay back the billions they left foreign investors in hole. “Never stop paying your mortgage”, LOLOL. Go back to the 50’s when the banks where your neighbors. Welcome to the hard realities of capitalism.
As someone sitting on the sidelines during the explosion of subprime loans, and watching people that could not normally afford to move into their own home buy big houses, I have to say I am a bit torn. While I was shaking my head wondering how these people were going to be able to afford the payments, I did (for a second, anyway), wonder if I was not making a mistake by not pulling the trigger and buying a house. Unlike many who jumped in, I have great credit and money in the bank for a deposit–but I knew I would possibly be cutting it close each month if I actually purchased what I wanted. Unfortunately, I understand why it makes sense to walk away–and I also think it irresponsible. The problem is that buying a home is now becoming harder for many of us who were responsible–and not helping out those who weren't isn't really an option–it's going to cost us more either way.