house forclosure

UPDATED: Oct 1, 2022

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house forclosure

Can not afford to make house payment and no
luck selling my house. What happens if I walk
Away from the home?

Asked on July 22, 2018 under Real Estate Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you walk away, the lender can foreclose IF they choose--they are not required to. If they do not foreclose, they can simply sue you for the money; even if you don't have it now to pay, they will get a judgment against you which will last for years, will damage your credit for years, and which they can use to collect from you if your financial situation improves.
If the do foreclose, the house will be sold at a foreclosure sale or auction. The proceeds, after paying cost of the sale, will be applied to the  mortgage. If the mortgage is not fully paid off, the can sue you for the remaining balance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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