What repercussions could there be against us if we let the bank foreclose on our house?

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What repercussions could there be against us if we let the bank foreclose on our house?

We own 2 houses in which one was rental. Renters moved out and left alot of damage. What would happen if we don’t make house payment and let the bank have the house?

Asked on January 18, 2012 under Real Estate Law, Georgia

Answers:

Madan Ahluwalia / Ahluwalia Law Professional Corporation

Answered 10 years ago | Contributor

First you need to determine whether you have any equity in your home.  Foreclosure is never a good idea if you have any equity in your home. 

Foreclosure stays on your record for a long time, and it will hurt your ability to refinance your "real" home and with your credit in general.  You may want to consider a short sale instead.

If you took out a HELOC loan on your home, you are still responsible for any deficiency on that loan if the bank does not receive a high enough bid to pay off your entire loan in the foreclosure sale.

Talk to your bank first to review all your options.


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