Ask Experts Questions for FREE Help !
Ask
    Propitatory33AD's Avatar
    Propitatory33AD Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 22, 2007, 10:11 PM
    If we give our house back to the bank when we surrender it, how can they collect?
    Because theMarket has dropped SO bad, we are "upside down in our house verses our mortgages by $150,000. We can no longer afford to live here. If we give it back to the bank, what can they collect from us? We have no assets. We are both disabled with small children. Only lots of medical and credit card debt. We file bankruptcy and that would be that would be that, correct? There is no Gulag for people in debt in the US. Are there risks beside a black mark on our credit?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Aug 23, 2007, 04:53 AM
    Hello P:

    I think you understand your prediciment pretty well. If there's nothing to collect, then there's nothing to collect. You might try a short sale. That way the bank takes the hit or at least shares it with you. I'd certainly try it.

    excon
    westnlas's Avatar
    westnlas Posts: 322, Reputation: 25
    Full Member
    		  
    #3

    Jun 26, 2008, 02:39 PM
    You may very well be "judgment proof". The worse that can happen is for the bank to attempt to collect on any judgment they get against you. At that time you can declare bankruptcy. Corporations do this all the time. Your credit is already shot when late payments start. Bankruptcy last 7 years and late payments 10 years. If you do decide to do this. Do it sooner rather than later and stop making any payments at all. Save the money for a new place to live. You might need to pay cash for everything for a few years, but your money goes further without interest payments.

    It's hard to squeeze blood from a turnip.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
    		  
    #4

    Jun 26, 2008, 03:35 PM
    Quote Originally Posted by westnlas
    You may very well be "judgment proof". The worse that can happen is for the bank to attempt to collect on any judgment they get against you. At that time you can declare bankruptcy. Corporations do this all the time. Your credit is already shot when late payments start. Bankruptcy last 7 years and late payments 10 years. If you do decide to do this. Do it sooner rather than later and stop making any payments at all. Save the money for a new place to live. You might need to pay cash for everything for a few years, but your money goes further without interest payments.

    It's hard to squeeze blood from a turnip.

    No problem if it's your choice to answer old posts but this is from Aug 2007 and the OP hasn't been back -

    OP will probably not see your advice.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Giving your house back to the bank [ 6 Answers ]

Help! I made a bad investment in a place that is going nowhere. If I give my house back to the bank, will it affect my credit? :eek:

Give House to back to Bank - I have equity! [ 1 Answers ]

Hello All - This is my first time here. I was reading a couple of questions that others had asked regarding giving their homes back to the bank. I have a similar question, but I have about $50K in equity in my home right now. Here's the situation. My husband and I are divorcing, he just...

Deeding your house back to bank [ 3 Answers ]

Is deeding your house back to the bank the same as a foreclosure?

Voluntary giving your house back to the bank [ 2 Answers ]

I would like to know the nature of voluntary repo of a home. Can you let me know what would happen if I can no longer afford my mortgage and opt not to refinance because the mortgage would still be too high since I've had a death in family 5 months ago and I no longer have any assistance with my...

Need to Deed a House back to the bank [ 5 Answers ]

I currently own 2 properties and I need to sell one of them. It is a condo in Howell MI. We have tired everything to try and sell the property from paying closing costs to increasing the commission for the agents selling or buying the property. We have run out of ideas and money and now we need to...

View more questions Search