Walking away from foreclosures becoming a new cottage business

Peter Viles, the blogger for the L.A. Times' real estate blog, L.A. Land, was interviewed on last night's ABC News Nightline following some reader input on walking away from their mortgages. Also featured in the piece: a new company called "Youwalkaway.com" which sells a "Protection Plan & Kit" that provides the following:

1. We will stop your mortgage company from calling you. They will not be able to hassle you anymore. They won't be able to call you to collect!

2. You will immediately know the exact amount of days you have to live in your house payment free. We stay on top of your walk away plan and keep you up to date with weekly progress emails. We also will notify you if the lender is taking longer than expected subsequently giving you more time in your home payment free.

3. You will be enrolled in our affiliate credit repair plan. They have removed thousands of foreclosures from their clients credit reports.

4. You get a personal consultation with one of our highly experienced Real Estate Attorneys making sure the lender followed the law perfectly. If they did not, you may have a case against them.

5. You will have experienced foreclosure consultants available to answer any questions you may have during the entire process.

Moreover, according to their Q&A, they'll help borrowers at risk of foreclosure stay in their homes for up to 8 months without making any payments at all. From the Q&A page:

1.	How does your Walk Away Protection Plan & Kit protect me?
A.	When you purchase a Walk Away Protection Plan & Kit we commit to helping you through the entire process. You will get over 50 years of combined Real Estate and Law experience to help you know and understand your rights. If You qualify for our Plan, your lender WILL NOT be able to call you in attempt to collect. Your lender WILL NOT be able to collect any deficiency or loss they may receive by you walking away. You WILL be able to stay in your home for up to 8 months or more without having to pay anything to your lender. It's important to act now before it's to late.
2.	Will I owe any money to my lender?
A.	If you qualify and follow our steps, you shouldn't have to pay anything.
3.	Do I have to file Bankruptcy?
A.	No you don't have to. In many cases you can keep the rest of your credit in good standing and we can help you improve your score over the next 6 months.
4.	Should I hire an attorney?
A.	There are certain circumstances when an attorney is needed, however, hiring an attorney can be expensive with retainers and high hourly fees. With our Walk Away Protection Plan & Kit, we correspond with your lender if needed and we teach you, so you can do it all yourself. Attorneys have helped us put together our Walk Away Protection Plan & Kit so it contains information that attorneys may give you anyways. This alone can save you thousands of dollars.
5.	How long until I can buy a house again?
A.	Lenders typically like to see 4 years since the foreclosure was discharged. However, Fannie Mae (government loan agency) currently requires only 2 years. Before you know it, you will have this behind you and a fresh start!
6.	How long will a foreclosure last on my credit?
A.	Lenders usually look back 7 years. It will remain on your credit report for that long but the effects will diminish each year.

And all this for the low, low price of just $995 (payable in 3 easy payments!).

Of course what will the long-term ramifications of this be? Home loans will be much tougher to get for everyone in the future. But someone certainly saw the opportunity and went for it.