New York Times: Walking Away From Your Mortgage, Not So Bad After All | Consumerist
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New York Times: Walking Away From Your Mortgage, Not So Bad After All
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Before consumers walk away… they need to be EXTREMELY careful. In States like Minnesota, a second (or third…) lien holder can sue for a deficiency judgment for the outstanding balance left after a foreclosure sale. If the ex-homeowner loses the lawsuit… wages can be garnished and tax returns held, among other things.
We did not see many of these deficiency judgments being sought until the second half of 2008… but they are becoming more common as bank losses mount.
DON’T walk away from a mortgage before speaking with a non-profit (HUD Approved) foreclosure prevention specialist that can help you understand ALL of the ramifications.