Raymond Zulueta

Bill said on November 27th, 2007:

These landowners, who owe $250,000 on an asset now worth $160,000, and are paying taxes on top of it, owe nothing to the bank. Many will walk away. And the bank will be holding the bag. The supply-demand imbalance is still pretty wide.…

When Raymond Zulueta went into default on his mortgage last year, he did what a lot of people do. He worried.

In a declining housing market, he owed more than the house was worth, and his mortgage payments, even on an interest-only loan, had shot up to $2,600, more than he could afford. “I was terrified,” said Mr. Zulueta, who services automated teller machines for an armored car company in the San Francisco area.

Then in January he learned about a new company in San Diego called You Walk Away that does just what its name says. For $995, it helps people walk away from their homes, ceding them to the banks in foreclosure.

Last week he moved into a three-bedroom rental home for $1,200 a month, less than half the cost of his mortgage. The old house is now the lender’s problem. “They took the negativity out of my life,” Mr. Zulueta said of You Walk Away. “I was stressing over nothing.”

-NY Times, today

Raymond should have read Brick Oven, he would have saved $4200.

Afterthough Update: What a business model. I hereby announce the launching of my own service, called ‘You Drive Away.’ Clients wishing to take advantage of You Drive Away’s services need to follow our patented two step process:

1) Send You Drive Away a check for $800. That is nearly 20% cheaper than our main competitor.
2) Drive away. This is faster than walking.

You Drive Away is currently accepting franchise applications. For either opportunity, please leave a comment below.