Bankrate follows a strict editorial policy, so you can trust that
we’re putting your interests first. Our award-winning editors and
reporters create honest and accurate content to help you make the
right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with
accurate and unbiased information, and we have editorial standards
in place to ensure that happens. Our editors and reporters
thoroughly fact-check editorial content to ensure the information
you’re reading is accurate. We maintain a firewall between our
advertisers and our editorial team. Our editorial team does not
receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader.
Our goal is to give you the best advice to help you make smart
personal finance decisions. We follow strict guidelines to ensure
that our editorial content is not influenced by advertisers. Our
editorial team receives no direct compensation from advertisers,
and our content is thoroughly fact-checked to ensure accuracy. So,
whether you’re reading an article or a review, you can trust that
you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have
been helping you master your money for over four decades. We
continually strive to provide consumers with the expert advice and
tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that
our content is honest and accurate. Our award-winning editors and
reporters create honest and accurate content to help you make the
right financial decisions. The content created by our editorial
staff is objective, factual, and not influenced by our
advertisers.
We’re transparent about how we are able to bring quality content,
competitive rates, and useful tools to you by explaining how we
make money.
Bankrate.com is an independent, advertising-supported publisher
and comparison service. We are compensated in exchange for
placement of sponsored products and, services, or by you clicking
on certain links posted on our site. Therefore, this compensation
may impact how, where and in what order products appear within
listing categories. Other factors, such as our own proprietary
website rules and whether a product is offered in your area or at
your self-selected credit score range can also impact how and
where products appear on this site. While we strive to provide a
wide range offers, Bankrate does not include information about
every financial or credit product or service.
Editor’s note: This is a transcript of the audio file.
For those who owe more on their mortgage than their home is now worth, walking away may be tempting. But think it through — the consequences of doing so can be severe. I’m Claes Bell with the Bankrate.com Personal Finance Minute.
The biggest drawback to mailing your keys to your lender and moving out is that it ruins your credit score for years to come. Damage from a foreclosure typically lasts seven years, during which time it will be difficult to get a credit card, auto loan, or any other type of credit.
Underwater homeowners can also get out using a short sale, but that also creates a black mark on your credit report, and getting a lender to agree to sell the house for less than the balance of a mortgage can be difficult.
Things may get even more complicated for short sellers next year. Unless a temporary tax break is extended by Congress, homebuyers may have to pay tax on any mortgage debt forgiven by their bank through a short sale in 2013.
The bottom line is, if you can afford to make your mortgage payments and you don’t need to move, staying put may be your best bet.
For more on this and other personal finance topics, visit Bankrate.com. I’m Claes Bell.
Share