If I wewr towalk away from my home what could my mortgage co. hold me resposable for?

My loan was just modified but I’m still struggling to make my payments and also just took a 20% cut in pay after the mod.

Asked on May 28, 2009 under Real Estate Law, California

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

A lot depends on whether the house is worth more, or less, than the mortgage balance.  In most states, if the foreclosure sale doesn't bring enough to cover the balance and the costs, the lender can get what's often called a "deficiency judgment" for the difference.  However, if the difference isn't too great, and you're willing to move out quickly, many lenders are willing to negotiate a deal where you deed the house to them and you walk away free and clear.

Please, don't try to do this yourself, at the very least not before talking to a real estate lawyer in your area, who can give you sound advice based on all the facts and the laws of your state.  One place to look for an attorney is our website, http://attorneypages.com


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