How will walking away from your morgage affect your credit score and ability to buy a home in the future?
You signed a contract to borrow X dollars from the bank and pay it off over a period of time. If you "walk away" from that and don't pay the bank back, the bank will see to it that your credit rating will reflect that you don't pay your obligations. No one will loan you money for a very long time. You may even have a hard time renting an apartment like the genius author of this article says you should do.
“How will walking away from your morgage affect your credit score and ability to buy a home in the future?”
I don’t know how it would affect your credit in the long run, but I had a conversation recently with a (seemingly) well to do person/beautiful home - that didn’t set well with me.
This man was having a garage sale, we started talking, and he told me he had just bought another home in the same neighborhood. I noticed the realty sign in his yard and congratulated him on being able to sell - and he told me the house didn’t sell - that he was “letting the bank have it back.” During our conversation, he made it clear that he had bought the second one at a bargain price with this in mind. He was one of those braggy types and seemed so proud of himself.
I wonder how often this happens. But I suppose if you qualify on paper and have the ability, you can do this and probably get away with it. It may come back on him but he didn’t seem to care.
“How will walking away from your morgage affect your credit score and ability to buy a home in the future?”
200-300 point credit drop- that’s it