News by Subject
Complete list of specialty news sections.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Mortgage Industry News
Subscription-based news for people who work in real estate finance.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories for your web site or for your RSS reader.

News Archives
Archive of news entries.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Graphs
Directory of lenders, branch operators and mortgage service providers.
home advertise email RSS about us
HOT Topics Rates Glossary LO License Search
Consumer Mortgage News
Free mortgage news for current and prospective borrowers from a leading online mortgage industry news publication.

Bankers Warn Against Walking Away
In a press release, the nation's bankers warned borrowers that walking away from an upside-down property has some serious consequences.



ABA offers guidance to homeowners considering default

WASHINGTON (June 17, 2010) -- Recent media reports describe the increasing tendency of financially stressed homeowners to simply “walk away” from their mortgage, a practice called a “strategic default” whereby the owner simply stops making mortgage payments and forces the bank to foreclose on the property. While turning in the keys and stopping payments to your bank may seem like an easy solution, homeowners should know that strategic defaults can result in costly consequences.

A strategic default/foreclosure can result in a credit score dropping 100 to 400 points, making it difficult to obtain other credit and nearly impossible to get another mortgage for at least three to seven years. Homeowners considering this solution should also be aware that many states allow banks to pursue the homeowner’s remaining assets such as bank accounts, automobiles or other investments. A strategic default can also have serious tax consequences.

“Homeowners in financial distress should contact their lender as soon as they know they may have trouble making their next mortgage payment. The earlier you contact your lender, the more options you will have,” said ABA Executive Vice President Robert Davis. “Most banks are eager to work out a mutually beneficial arrangement and borrowers should consider all the pros and cons before settling on any solution,” he added.

Better solutions for homeowners who are having difficulty making mortgage payments include short sales and mortgage modifications. Short sales, which allow homeowners to sell a house for the remaining mortgage balance, relieves them of monthly mortgage payments but they could be required to pay the difference between the selling price and what was owed on the original mortgage. If the homeowner is unable to pay the deficiency, banks may seek the homeowner’s remaining assets and the homeowner can face undesirable tax consequences and still need to find new housing.

Mortgage modifications, including those under government programs, may be the best solution for homeowners who can qualify. A modification can help borrowers achieve affordable payments without any court judgments and without requiring the homeowner to move.

Here are the pros and cons of each potential solution for homeowners in financial distress:

ABA chart

For homeowners having trouble paying their mortgage, ABA strongly recommends they consult or call 1.888.995.HOPE. HOPE NOW is a cooperative effort between counselors, investors, and lenders to help homeowners in distress.

For more information on budgeting, saving and managing credit, visit the ABA Education Foundation’s consumer web page at

The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. Learn more at

SOURCE: The American Bankers Association

back to home page

Copyright © 2016 Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

pricing engine directory

wholesale lender directory

More Mortgage News Resources ( full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

refinance news

reverse mortgage news

secondary marketing

servicing news

subprime news

wholesale lenders

Refinance News
News about refinance programs, pricing and production.
H A R P 2.0 News
News stories about the H o m e Affordable Refinance Program including expanded program guidelines.