LIVE IN ILLINOIS, OWE 18OK ON HOUSE AND HOUSE WORTH 168K. THINKING ABOUT WALKING AWAY? CAN THEY GO AFTER ME FOR THE MONEY AND MY OTHER ASSETS I HAVE?

Asked by Fountain, 60421 Wed Oct 26, 2011

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Anthony Cavalea IV’s answer
Anthony Cava…, Agent, Jolier, IL
Thu Oct 27, 2011
Yes, they absolutelly can; they can obtain a deficiency judgment. And why are you walking away? If you don't need to sell and you are making your payments then why not just stay and weather it like the rest of us? You made a promise to pay back your loan when you bought your home and simply being underwater isn't a good enough reason to walk away. But if you have a legitimate reason that you must move (an actual hardship) then you should try a short sale-especially since you're not that far in the hole and your lender might be more willing to work with you on it. A short sale will also greatly reduce the damage to your credit if you must sell. Contact me if you are interested in hearing more about this option.
1 vote
Connie Bernal, Agent, Oak Lawn, IL
Thu Oct 27, 2011
Yes, they can come after you. Get your home sold through a Short Sale if you are having a hard time with the payments.

You need a short sale agent and I do Short Sales. You are more than welcome to CALL ME AT 773-517-8373 under no obligation. Don't Walk Away--there is always a way out. :)
0 votes
Annette Law…, Agent, Palm Harbor, FL
Thu Oct 27, 2011
Fountain,
Unfortunately, by walking away you do open yourself to ongoing asset recovery action. Some years down the road, when big box bank sells the right to collect this asset to 'Knee Break Asset Recovery" and KBAR renews this right (in Florida this can continue for 17 years) you can find yourself in real prolonged financial purgatory. This is serious. KBAR can get you fired and make you unemployable.

There is good news. Your underwater amount is not insurmountable. Contact a real estate professional who specializes in distressed property and alternative financing. Do not contact a real estate agent who specializes in selling bank owned homes. You have real options of which you are unaware.

Walking away is the option many have chosen. One must believe the banks, from the great good will in their hearts, will ignore the revenue available by assigning collection rights. It's a bet based on wishful thinking.

Be aware, only Tom and Tammy taxpayer is encumbered with moral or ethical responsibilities. The bank can and does to what ever they will, legal, illegal, immoral, unethical and downright evil. Don't be persuaded by such arguments. It is a business decision. Consult an attorney or financial adviser to understand the possible consequences to you.

You will find very little justification for placing yourself in such great peril over a $12K difference. It is likely you will discover you are actually at a break even situation.

Consult with your attorney or financial adviser and real estate professional and set the course most beneficial to you.
Best of success.
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