Church is advising us to walk away from our home in foreclosure. What happens to the tax liens & personal?

Asked by Summitdave, Irvine, CA Thu Apr 30, 2009

judgment liens? Is the $ owed collected from the lender?

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Brad Davidson, Agent, Placentia, CA
Thu Apr 30, 2009
If the tax liens are property tax liens they are known as "Specific Liens" and are against the property. They will get paid by the lender after they foreclose on the property. State tax liens, IRS tax liens and judgement liens are "General Liens" and are filed against you personally and will not be affected by the foreclosure. You will still owe that money and the creditors can come after you.

Real Estate Commission Rebates
1 vote
Keith Manson-…, , Milwaukee, WI
Fri May 1, 2009
There are lots of things involved in the decision to walk away from your property and how it effects your future. This is not something to take lightly! The decision you make today, may affect you for up to 7-10 years. Your credit report will be hit 2-300 points which will effect purchases for other items that need credt and may even effect employment is some situaitons. Get a local expert walk through your options and make an educated decision rather some general opinion from someone that does not understand.

Good Luck!
0 votes
SeattleHome.…, Agent, Seattle, WA
Thu Apr 30, 2009
Your church should not be advising you on real estate and tax matters. Get in touch with a local real estate agent, real estate attorney, and/or tax advisor.
Web Reference:  http://SeattleHome.ocm
0 votes
blaison samu…, Agent, Santa Clara, CA
Thu Apr 30, 2009
I think you need to walk away from Church to a different church where you can give good advice (my 2 cents)

If you just walked away from the house, your credit will be affected bad with foreclosure on your credit history. The lenders may come after you for the remaining balance.

My advise is if you are having hardship and still have job then call the lender for loan modification or contact an attorney to help you with loan modification and stop the foreclosure. If your modification denied or cannot afford to live there then try to do short sale, which will save you from foreclosure and your credit will not ruin as foreclosure. Consult with CPA or attorney for tax ramification and experienced realtor in short sale to sell the house (if you don't want to live there). First start with loan mod then short sale...good luck.

Blaison Samuel
Certified Short Sale Specialist
0 votes
Joan Patters…, Agent, Rancho Cucamonga, CA
Thu Apr 30, 2009

I would not advise you to just walk away from your home. Try to keep your home if you can as you will need a place to live. Have you tried renegotiating with your lender to do a loan modification? There is hope and help out there for you. Do not give up. Send me an email at and I can direct you to loan modification companies that are legitimate and recommended by the State of California. They do not have upfront fees and it could be worth a shot to keep your home.

I would consult with a tax person as to the ramifications of tax liens and personal liens as I am not a tax person. It would be in your best interests to talk to someone that does taxes for a living.

Please let me know if I can help you in any way. I would hate to see you lose your home because you did not try all of your options. I notice you are an agent, and I would love to help a fellow agent as well!

Kind regards,

Joan Patterson, B.A., A.S.P., G.R.I., Realtor
Keller Williams Realty
8250 White Oak Avenue, Ste 102
Rancho Cucamonga, CA 91730
0 votes
John Paul Da…, , Rancho Cucamonga, CA
Thu Apr 30, 2009
It is NEVER advisable to walk away from your home. There are many options out there that will allow you to leave on better terms with your lender and reduce the damaging effects that a foreclosure has on your credit. You can check out the short sale section of my website as I have many of the common foreclosure alternatives clearly outlined for your information.
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