Posted on: 30th Sep, 2009 11:09 am
Had a sinkhole repaired two yeasrs ago. The Fl. ins. co. dropped us afterwards. The hole is beginning to show signs of opening agin and I have NO sinkhole insurance with the new company. It has now affected my septic system. Financially, I am unable to make any repais and am barely holding on. I have thought of just walking away and letting the bank foreclose. I feel I have no other options. We couldn't even afford medication for my depression due to this mess. I also refied the mortgage about two years ago. Please help !
Hi kretkow,
You can definitely walkaway from the property, but you should remember that it would have a bad effect on your credit. Once you walkaway from the property, the lender would foreclose it. This would reduce your credit score by 250 points and it would remain on your credit report for the next 7 years. Moreover, the lender will also sue you for the deficient amount resulting from the foreclosure sale.
You can contact your lender and apply for a deed in lieu of foreclosure. Unlike foreclosure, you won't be liable to pay off the deficient amount but the other effects on your credit report would be the same.
You can definitely walkaway from the property, but you should remember that it would have a bad effect on your credit. Once you walkaway from the property, the lender would foreclose it. This would reduce your credit score by 250 points and it would remain on your credit report for the next 7 years. Moreover, the lender will also sue you for the deficient amount resulting from the foreclosure sale.
You can contact your lender and apply for a deed in lieu of foreclosure. Unlike foreclosure, you won't be liable to pay off the deficient amount but the other effects on your credit report would be the same.