What happens if I don’t want the house anymore and want to walk away?
Walking away from a home means letting the home go to foreclosure. Fannie Mae and Freddie Mac have both released statements noting they will penalize people that just walk way from their mortgages without trying to workout their situation. This foreclosure procedure will reflect negatively on your credit report for about 2-7 years. If they cannot afford the home at all or simply just want to walk away the best solution is to request a deed-in lieu of foreclosure or try to do a short sale. Although these two options will have a negative affect on your credit report, once approved you will no longer have any financial responsibility to the lender or bank and you will no longer have the house.