Foreclosure in 10606>Question Details

Jm, Home Owner in 10606

can I walk away from my house without worrying I'll need to pay back somedayr?

Asked by Jm, 10606 Sun Apr 10, 2011

I own a house in NY and keep up the payment anymore. I plan to move to a different state, if I walk away from it, will bank go after me?

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If the bank forecloses, you could be held accountable for whatever is owed after the eventual sale of the house, as well as the difference being treated as 1099 income and you'll owe taxes on that outstanding amount. Speak to an attorney about your options as a homeowner before you take that drastic step.
1 vote Thank Flag Link Sun Apr 10, 2011
The best way to avoid unpaid bills from following you, is to address them. You would need to consult an attorney to see if your state is a re-course state and if the bank can go after you for the deficiency.

You can do a short sale and keep foreclosure off your credit. We would negotiate with your lender to try to get you off the hook for the deficiency. There wouldn't be any surprises. You would know where you stand when you close on this house. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Mon Apr 11, 2011
If you already haven't, contact your lender and check on a loan modification, is a short sale an may wish to consult with an attorney who specializes in real estate as well, most professionals do offer a free consultation, or contact your local Legal Aid Society for a pro bono attorney--free.
0 votes Thank Flag Link Mon Apr 11, 2011
No one can tell but if you have a government insured loan watch out. Here is a link to Fannie Mae about walk aways and Freddie is doing the same thing.
0 votes Thank Flag Link Mon Apr 11, 2011
Knowledge is power. Get your lender on the phone and be open about your situation. You are not the only one the bank is dealing with in this situation. They will give you some options. An attorney well versed in short sales and foreclosures might not be a bad idea but I woud first hear what lender has to say. Good luck!
0 votes Thank Flag Link Mon Apr 11, 2011
We don’t know what you lender will do. The reality is that we do not know what the lending community is going to do in the future in the face of the huge amount of loan defaults that have been taking place and will continue for some time to come. Some folks guess that the lenders will be afraid of the political fallout if they try to collect for unpaid mortgages after the owners have lost their homes. Some expect the lenders to sell these unpaid accounts to collectors for pennies on the dollar and let them try to collect. Truth is we don’t really know.

Seek legal advice before taking any action which you may regret.
0 votes Thank Flag Link Sun Apr 10, 2011
Walking away from your obligation is one of the worst things you can do. The banks are NOT lenient! They will hold you liable for not only the mortgage but any deficiency as a result of a short sale. Not to mention the long term damage to your credit. There are options that can help you get through this very difficult time. Short sale being one among a couple.
0 votes Thank Flag Link Sun Apr 10, 2011
The laws vary in each state. Some states are deficiency states which means they can come after the owner for a loss. Contact an attorney in your state to be sure of your situation.
0 votes Thank Flag Link Sun Apr 10, 2011
Hi, the days of just walking away are long gone. The banks are taking more action then they used too and holding the owner responsible.

0 votes Thank Flag Link Sun Apr 10, 2011
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