Consumer Law

New financial plan: walk away from your mortgage

By Sam Glover

I am torn. I don’t know whether I should post this link or hope it dwindles into obscurity (unlikely). The website says it all:

You Walk Away promises to help homeowners walk away from their current mortgage with no debt, no strings, and says ballsy things like this:

You will immediately know the exact amount of days you have to live in your house payment free. We stay on top of your walk away plan and keep you up to date with weekly progress emails. We also will notify you if the lender is taking longer than expected subsequently giving you more time in your home payment free.

My italics. I know we talk a lot about how many mortgages never should have been made in the first place, but that does not mean that walking away and gleefully living “payment free” is the solution. The responsible solution is to refinance, negotiate a lower rate or a deed in lieu of foreclosure, or sell the house. If none of those things work, then the bank may foreclose if it wishes, but the consumer will feel the effects on their credit report and possibly through residual collections. Foreclosure ain’t pretty, folks, no matter what this website would like you to think.

You Walk Away also says “You will be enrolled in our affiliate credit repair plan. They have removed thousands of foreclosures from their clients [sic] credit reports.” Maybe this is true, but I cannot think of a legal way that the “affiliate credit repair plan” could be doing this.

I would love to see the magic letter they send to the lender to stop them from harassing borrowers. (I would also love to take a red pen to their website.)

[via Behind the Mortgage]

Edit: Michael Shedlock of Mish’s Global Economic Trend Analysis called up You Walk Away to find out more:

(FYI, $995/half hour is probably the highest hourly rate in the world.)

Full post as published by Caveat Emptor on January 30, 2008 (boomark / email).