Bankruptcy attorney Liz Quick says walking away is not the answer.
“You might end up having issues related to your loan, perhaps predatory lending. Or you could have a professional look at a contract to see if there’s any protection for you within your contract rights.”
Quick said that 36 percent of those who have problems with their mortgages say its worth it to just abandon their homes. She said many people do try to hang on to their properties and make payments as long as they can. Quick said the best tool you can have against losing your home is information.
“Educating yourself and getting as much information as you can, as early as you can, is always the best advice. There’s a lot going on that’s there to find, but you do have to put out the effort and go after it.”
Quick says the federal mortgage modification programs got off to rocky starts, but in her view, they seem to be more responsive now.