Consequences of foreclosure?
I’m upside down on my mortgage and lost my job. I would lose money if I rented out my unit because my mortgage would cost more than the rent compared to nearby condos.
I live in Nevada and all my family is on the east coast. Its very hard to sell my condo, what consequences could I face if I just walk away and move back to Florida?
5 Responses
Terry F
12 Feb 2010
lost
12 Feb 2010
either way they would find you and no matter where you worked and they would find out where you lived the best thing so call your lender
golferwhoworks
12 Feb 2010
your credit will be shot you will get sued and you may end up filing bankruptcy and you may have to pay taxes on the loss you avoided aside from that not much.
Get a job asap and seek a loan modification from your lender if you can
knappneedleman
12 Feb 2010
Destroyed credit, and the inability to buy another house.
preludehc
12 Feb 2010
Yeah call the lender. If you just up and leave the it will kill your credit score and your name. And yes they will find you and they can take legal action; Its called a breach of contract. My uncle did that on his house about 1 year ago and it killed his score and they found him and sued him and not only that, but the government seized his bank accounts and gave a percentage to the lender ( and kept some for themselves of coarse), but now he owes over half a mil to the lender and he could face imprisonment. just work something out with the lender because walking away from your problems can lead to serious consequences.
The consequences involve the record of having your home foreclosed upon and that is not the end of the world but you can often get something better. Call your lender and talk to them. You may have to move up the chain of command from the one who answers the phone. Lay out your situation and hope you reach someone with empathy enough to really help you.
If you can not get a better arrangement, ask about giving them the "deed in lieu of foreclosure." It is usually possible to do something that does not force the foreclosure process and does not have as bad an impact on you and your credit in the future.