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walking away from mortgage

Posted on: 15th Dec, 2009 08:18 pm
If I walk. What liability do I have. Can they come after savings or IRa/401K accounts.
If you walkaway from the property, the lender will foreclose it. A foreclosure would badly affect your credit score and reduce it by 250 points. Moreover, you would be responsible for paying off the balance amount resulting from the sale of the property. Also, a foreclosure will remain on your credit report for the next 7 years.

If you are unable to pay the deficient amount, the lender will be able to garnish your savings account. However, retirement accounts and social security income cannot be garnished by the lender.
Posted on: 16th Dec, 2009 01:11 am
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