Posted on: 31st Mar, 2010 10:53 am
I have a friend who has had some medical problems for the past year. She has had disability insurance and is current in her mortgage payment. My question is: Is there any means for her to "give back" her property to the lender and walk away from her mortgage and her lender not come back at a later date and proceed to garnish her future earnings? She is running out of her disability payments in June and she is sorely distressed about this. She is a Georgia resident.
Thank you
jim
Thank you
jim
Hi rabyjames!
Welcome to forums!
If she walks away from the property, then the lender will foreclose it which will have a negative affect on her credit and she would be responsible for paying the deficient balance resulting from the sale. I would suggest your friend to apply for a deed in lieu of foreclosure with her lender. Though this will have a negative affect on her credit, she won't be liable for the balance amount resulting after the sale of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If she walks away from the property, then the lender will foreclose it which will have a negative affect on her credit and she would be responsible for paying the deficient balance resulting from the sale. I would suggest your friend to apply for a deed in lieu of foreclosure with her lender. Though this will have a negative affect on her credit, she won't be liable for the balance amount resulting after the sale of the property.
Feel free to ask if you've further queries.
Sussane