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

UPDATED: May 28, 2009

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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


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

Answered 13 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

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 AttorneyPages.com 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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