If we are unable to continue to pay our mortgage payments, can we just walk away from our home and turn the house keys over to our lender?
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If we are unable to continue to pay our mortgage payments, can we just walk away from our home and turn the house keys over to our lender?
Asked on October 13, 2011 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Many people these days do walk away from their home if they cannot continue making their mortgage payments. The problem is that if the loan that is being paid on the home is not "purchase money" (loan used to acquire the property) and if your state has anti-deficiency statutes concerning purchase money loans, there could be recourse against the property owners if the home is foreclosed upon and it sells for less than what is owing on the loan.
The key is to make sure in your situation of the loan is purchase money and if your state has anti-deficiency statutes concerning purchase money loans.
With that being said, I suggest that you consult with a real estate attorney before you actually walk away from your home.
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