Considering Walking Away From a Mortgage?
Most Ohio residents know what it’s like to face financial challenges. In fact, you’d likely be hard-pressed to find an average citizen in the nation who hasn’t had money trouble at one time or another. Sometimes, things just get a little out of hand — perhaps, unexpected medical bills arise, or someone loses a job, and it suddenly becomes difficult to make ends meet.
Many people facing such circumstances simply set their bills aside while they put food on their tables and otherwise cover the cost of daily living. The problem is, avalanches typically begin quietly and softly, and before those at the foot of the mountain realize what’s happening, heaps of heavy snow are plummeting down, building up a wall of massive destruction.
Financial problems can be like this. You think you’re facing a minor issue, and then you suddenly realize you’re in serious financial trouble, in need of immediate debt relief.
Should You Abandon Your House?
This type of situation can bring a person to the brink of despair. When creditors call day after day, and you feel like you’ve done everything you can to avert disaster, but still don’t have two pennies to rub together, it may seem like your financial problems are insurmountable. In fact, some people who have faced such circumstances in the past have been tempted to walk out of their homes and never return.
Here’s why walking away from a mortgage might not be a good idea:
- Starting over is tougher with bad credit: If your home goes to foreclosure, it may seriously damage your credit rating, which, in turn, may make it very difficult to restore financial stability in the future.
- Tax problems may arise: It may be tempting to just up and walk away, leaving your home to foreclosure when financial problems appear un-resolvable. Do you know, however, that if your home sells for less than what you owe on it, the government may tax you on the difference because it considers it income? This is because, in such situations, the government would forgive the rest of your loan; so, it treats that as money made on your end.
- Might lose more than your house: If you attached any other property to your mortgage for added security upon purchase of your home, a foreclosure can also take that property.
- Other options available: It’s generally best to explore all available options before walking away from a mortgage. You might be able to get a short sale instead or seek loan modification to keep you from losing your house.
Many people worry about the stigma often attached to serious financial woes. However, struggling financially is far more common than most people realize. If you live in Ohio and need help determining how best to rectify your current financial problems, you may want to see if your local library has resources regarding free financial classes or helpful lectures in the area.
How Our Debt Relief Firm Can Help
You can also speak with an experienced bankruptcy attorney. A bankruptcy attorney addresses serious financial problems on a daily basis; you can discuss your particular situation in a private setting to determine how best to proceed to satisfy your debts and step toward a more financially successful future.
In order to give you the best advice and answer questions specific to your situation, we encourage you to call 513-838-2407 to schedule your free consultation with an experienced bankruptcy attorney in Cincinnati today!