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    bobbyc123's Avatar
    bobbyc123 Posts: 3, Reputation: 1
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    #1

    Jan 3, 2009, 08:14 AM
    Foreclosing and walking away
    What would I owe if I were to walk away from my home. It is a 380,000 mortgage and the house is probably worth 330,000 right now. Would I be responsible for the loan or how does that work?
    N0help4u's Avatar
    N0help4u Posts: 19,823, Reputation: 2035
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    #2

    Jan 3, 2009, 08:40 AM

    If you still owe say $300, and they sell it for $220, then you would owe the difference of what you owed and what they sold it for.
    deedgrabber's Avatar
    deedgrabber Posts: 34, Reputation: 4
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    #3

    Jan 3, 2009, 08:41 AM

    I believe that if the bank bid the full $380,000 at the sale, which is typical, you would not be liable for any deficiency. Though it would show on your credit as a foreclosure of course.

    If the bank offers it for less at the sale and someone buys it for less, you could have a deficiency judgment for the difference.

    Some states protect you from that if it's your homestead though, I believe.
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