Walking Away From a Mortgage

I have noticed many more homeowners are deciding to just walk away from their mortgages due to the decline in the value of their home. A recent study  reveals that those who take this route are dealing with the value of their home being 75% or less than the amount of the mortgage balance they owe. The scary part here is that the present number of homeowners in this category is approximately 4 million. If the real estate market slides further as it is expected, this number could rise to around 5 million. This will further impact the recovery in real estate. There is no real easy answer here. One thing that is clear is that the sooner the lenders accept these losses once the borrower defaults, the sooner the real estate market will stabilize.

If you or someone you know is facing circumstances similar to these, please contact the Law Office of William J. Reinhardt, Jr. at bill@billreinhardtlaw.com or call me at 718-377-8880. I will review your circumstances and advise on a plan of action that best suits you and your family.

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