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paularmcl · Joined: 27 Jan 2009 Posts: 1 1.00 Dollars($)

We bought a small house last summer with the intention of living in it for the rest of our lives. We put our big house on the market at the end of July, and only 3 people have looked at it so far. We are thinking of just walking awaya from this house, since it's value is less than we owe on it, and we can't get anyone to look at it. What are the ramifications for us?

jameshogg · Posted: Tue Jan 27, 2009 8:42 pm Post subject:

Hi paularmcl,

If you walk away from the property, the lender will foreclose the property and sell it off. A foreclosure will badly affect your credit score and lower it by 250 points. The deficient amount resulting from the sale of the property will be charged from you. If you are unable to pay the deficient amount, then either your wages will be garnished or the lender may place lien on your other properties.

In my opinion, you should speak to the lender and try for short sale or a deed in lieu. This will help you in avoiding foreclosure. To know more about different ways to avoid foreclosure, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Thanks

Samantha · Posted: Wed Jan 28, 2009 3:46 am Post subject:

Hi paularmcl,

It's not the right decision to simply walk away without paying anything or working out a payment plan with the lender. No doubt, it will affect your credit. And the lender may foreclose the property and file a judgment against you.

As per the judgment, you may have to pay the deficiency resulting from the difference between your loan balance and the foreclosure sale proceeds. There could be tax ramifications if you don't pay the deficiency.

May god bless you.

Samantha

Guest

We are looking at the house we so desired several years ago and not its at a short sale at our budget, However we have a home to sell in this market and we could pay a few months mortgage payments on both to get it but is it worth the headaches???

Niicss · Posted: Tue Mar 17, 2009 3:12 am Post subject:

Hi Jon

In my opinion, it would be better if you could first sell off your property and then buy another property. You may have to pay the mortgage for both the properties in case your existing property doesn't sell within few months. In that situation, if you stop paying the mortgage, your properties will go into foreclosure and your credit will be badly ruined.

Thanks.

Guest

If one owns a home in Indiana and forecloses on another, can the lender place a lien on the home that is paid off?

smithsussane · Posted: Wed Jun 29, 2011 10:53 pm Post subject:

Hi Guest!

Welcome to forums!

If the lender files a lawsuit and gets a judgment against you, then he will be able to place a lien on the home that is paid off.

Feel free to ask if you've further queries.

Sussane

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Going into Foreclosure on one house while owning another