I would like to walk away from a w/f home. I refinanced this home in 2007 for $571,000.00 in order to roll a $230,000 business mortgage debt into a more favorable interest situation. The w/f home was appraised at $900,000.00 at the time of refinancing. Curently I owe $491,000.00 on the refi mortgage. I would like to sell the home, but realtors indicate that it currently values out at $300,000. to $340,000. I have a business with diminishing net profit ($14,000. in 2011), and a full time job as a truck driver ($34,000. in 2011). I am 69yrs old.Does walking away make sense?
Country relating to Question: United StatesWhat have you tried so far?: 1) Talked to mortgage servicing company.
2)Talked to a lawyer for "free consultation".
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.
I certainly understand your concern. What State is the home owed in? Also, can you please be more specific when you use the term w/f home. Thanks!
I live in Washington state. Sorry about w/f home It stands for waterfront home.
Steve, thank you for that additional information. Walking away is normally the last resort for a borrower and it is often better to try and exhaust all other remedies, prior to. With that said, it is always best to speak with the loss mitigations department of your lender and see if they would agree to accept a deed in lieu of foreclosure or a short sale of the property, in both situations, agreeing to not hold you accountable for any deficiency. The reason that these options are better then walking away, is that it will prevent a foreclosure from appearing on your credit, which can stay there for roughly 7 years. Moreover, if the loan is yet to go into default and is not reporting as late on your credit, it can still be saved. If you were to just walk away and the lender were to foreclose, a deficiency judgment may not generally be obtained, using the non-judicial foreclosure process, when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage or deed of trust secures. A deficiency judgment can be obtained in judicial foreclosure sale, unless the property had been abandoned for the preceding six (6) months prior to the foreclosure judgment or decree that would preclude any deficiency. As such, they may not be able to go after you for any money, in the event that you walked away.
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