When is it okay to walk away from your mortgage?
Posted by Jolenta Averill on
Have you recently been laid off from your job and are facing difficulty making your monthly mortgage payments? Are you thinking of walking away from your mortgage? If you answered yes to either one of these questions, then you should know what adverse effects walking away from your mortgage could bring to your financial life.
When to walk away from mortgage
It is strongly advisable not to walk away from a mortgage, unless you are faced with an extreme situation, such as one of the following:
o   Due to a sudden drop in income you are unable to make your mortgage payments
o   You are underwater and have little or no equity in your home
o   You are not eligible for a loan modification and you are in a non-recourse loan state (see below)
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