First Person: The 3 Reasons Why I Walked Away From My Mortgage

Walking away from my mortgage was one of the hardest things I have ever done in my life. The decision still haunts me to this day. Like everyone who has walked away from their mortgages, I had my reasons.

Underwater

Like many people, my home was worth less than what I owed on it when I decided to walk away from my mortgage. It was not worth that much less than the amount owed on it but it was enough to make it impossible to sell. The only way it could have been sold is to have done a short sale on it or to have come to the closing table with a significant amount of money. I attempted to sell it two different times and both times the house stayed on the market for months with little interest.

Repairs Needed

The home was aging and in need of many repairs. It needed to be painted inside and out, the carpeting needed to be replaced, the windows needed to be replaced, the exterior of the home needed to be repaired in places, and the bathrooms were in need of remodeling. These repairs would have cost well over $10,000. It seemed pointless to sink more and more money into a home that was already not worth what was owed on it. I had already spent quite a bit of money on getting squirrels out of the attic and getting the roof replaced on it in an effort to try to help it sell.

Difficult Bank

I had a first and second mortgage on my home and had already saved it from foreclosure once. I knew from my dealings with my banks during that process that the company that had the second mortgage on my home was difficult to work with. They lost my paperwork and even lost money that I sent to them. Before walking away from my mortgage, I sent in paperwork twice to them to try to get my loan modified. They ignored it both times without even bothering to call me. In the end, it was easier to walk away than to try to deal with that bank.

My situation was also complicated by the fact that my ex-husband and I had problems coming to an agreement about the house so these were not the only reasons why I walked away from my mortgage. But at the end of the day, I chose to walk away and I am the one who has to live with the consequences of that decision.

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First Person: The 3 Reasons Why I Walked Away From My Mortgage