Can a bank come after a new home I pay cash for if I walk away from my home now.

I can pay 90k and buy a new house. Right now I owe 150k on a house that is worth 90k. If I buy the new house for cash, can I let the old house go into foreclosure without the bank coming after the new house I own outright?
Thanks

jenkin7 · Posted: Tue Jul 21, 2009 12:52 am Post subject:

Hi Guest,

If you let the current home go into foreclosure, you will be responsible for the deficiency. The lender will not be able to foreclose on your new house to recover the deficiency. But they can get a judgment against you, can place a lien on the property and can even garnish your wages. So, it's better to negotiate with the lender and try to convince them to accept a short payoff.

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