Is it Ever a Good Idea to Walk Away From My Mortgage?

Posted on Sep 24, 2012 in Roseville and Sacramento Short Sale FAQs

Hi this is Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. I wanted to talk to you today about whether or not you should walk away from your home. There are still a lot of people who are considering this, and there are big movements because a lot of people have tried loan modifications for maybe one, two, or I have even heard of up to three years trying to complete a loan modification and have been unsuccessful.

So with all this frustration, some folks just want to throw their hands up and say they are just going to walk away from their home. What does it really mean to walk away from your home or mortgage? Most people in the strict sense, when you walk away, you are packing up, taking off and letting the house go. Meaning it’s going to go off to foreclosure. Walking away from your home and not dealing with the issue could have some potential liability issues for you as a homeowner. One of the things that I suggest is consider a short sale even if you don’t have the most elaborate hardship, you can still possibly do a short sale on your property.

One of the liability issues is if you have a second mortgage and it’s different from your first lien holder, you could be held liable for that. So that’s one of the reasons why walking away and simply just letting the house go to foreclosure is not necessarily a great option. If it was me, I wouldn’t want to take that risk and find out if that second lien holder is going to come back and file suit against me to collect from walking away. There are other possible tax ramifications that could be an issue if you just walk away then if you did a short sale.

Again, I’m Mark Peek with Keller Williams, your Roseville and Sacramento short sale specialist and I’m here to help. If you have any specific questions, feel free to give me a call. I would be happy to talk with you about your specific situation and see if a short sale might be right for you or we can see if you have any other options available to you. Thanks and have a great day.

Read More