I want to walk away from my home and move to a better area in an apartment. I can no longer keep up with my mortgage payment. Can I walk away and move into an apartment? I do not have equity so I cannot sell. What will happen if I stop paying my mortgage? Can they garnish my wages? I am in CA.
2007-02-12 06:44:39 · 15 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you stop paying your mortgage and walk away from your home, you will be subject to foreclosure proceedings. In foreclosure, your house will be sold at auction. If the auction does not net the amount you owe on your mortgage, you may still be responsible for the balance.
Further, foreclosure action will affect your credit, and make it difficult to find a rental if the landlord checks your credit.
My advice is to talk to a realtor and see if there is a real estate investor that specializes in short sales. You may be able to get out from underneath the debt and owe less than if you went to foreclosure, or nothing.
2007-02-12 06:52:49 · answer #1 · answered by Insurance Biz CT 5 · 1⤊ 0⤋
You're kidding, right? You cannot just "walk away" from your home and expect the mortgage company to just shrug and think, oh well. The mortgage company will issue a foreclosure notice, and they will hunt you down and you will be in a lot of trouble. Just because you have no equity in your home does NOT mean you cannot sell it. Where did you get that idiotic idea? Place your home on the market NOW, sell it, take whatever you can get from the sale (even if it's only a couple thousand dollars, or less), and move. DO NOT, repeat DO NOT expect that if you walk away nothing will happen. Plenty will and none of it good. Did you HONESTLY think that you could do this?
2007-02-12 06:49:24 · answer #2 · answered by Anonymous · 1⤊ 1⤋
Do NOT walk away. Try to refinance to bring down the mortgage payment.there are plenty of financial institutions willing to help out. you have to do a little leg work, but they are there. If this does not pan out, sell the house and give the money to the bank. do not ry to keep it and run away. Money will run out and then you will be up the creek. In California, as in many other parts of the US and World, banks are ruthless, money hungry institutions that are more than willing to screw you over any way possible just to get the 57 cents you owe them.
2007-02-12 06:58:40 · answer #3 · answered by Hot Rod 3 · 0⤊ 0⤋
The "ONLY" thing they can take is the house, it the collateral on the loan, not your life. Also, it may damage you credit rating.
Cars work the same. I have even bought Repo Cars from banks, when they not trashed.
The answer above me is very good advice. Heck, just try to unload it and not worry if you pocket money, just sell it and get out from under the debt. Let the Realestate Broker have whatever.
2007-02-12 06:54:27 · answer #4 · answered by Snaglefritz 7 · 1⤊ 0⤋
You can't walk away! They will foreclose and sue you for a defeciency judgement. That is the difference in what they (bank) sells the house for ad what you owe. This does not include taxes, interest, penalties, court costs, attorneys etc. You will be sued for all of it. They will garnish under a judgement.
2007-02-12 06:49:53 · answer #5 · answered by sailcigar 1 · 1⤊ 0⤋
Yes. If you still owe money on your mortgage they can go after everything that you own including bank accounts, wages, etc... You basically signed away your life at the closing.
2007-02-12 06:48:01 · answer #6 · answered by true blue 6 · 0⤊ 0⤋
I am in your same situation but I think I would surrender the house to my mortgage banks. And, I think your credit will not be damaged? Also, try to refinance. Best of luck.
2007-02-12 08:33:00 · answer #7 · answered by Fernand D 1 · 0⤊ 0⤋
Not to clear on state laws, however, you do have a lot of time to sell your home, if time is your concern. You can also surrender, or walk away and avoid foreclosure, again these laws very by state.
2007-02-12 06:50:20 · answer #8 · answered by Joe P 2 · 0⤊ 0⤋
You can sell it even if there is no equity. Better to sell at a loss than have a foreclosure on your record.
Good Luck
2007-02-12 06:49:22 · answer #9 · answered by Anonymous · 1⤊ 0⤋
the bank will foreclose on the home and sell it. If they sell it for more than you owe on it, you'll get the difference. If they sell it for less, you'll still owe them the difference. In either case, you'll have a HUGE black mark against your credit, and it's possible that a whole lotta landlords will refuse to rent to you.
2007-02-12 06:48:35 · answer #10 · answered by I hate friggin' crybabies 5 · 3⤊ 0⤋