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Profile picture for questioning T

If one walks away from a house...

What happens? What if the person who owns the house has money but has decided with the market the way it is that it will take over 10 years (at 5% appreciation a year) to recover from the losses of the last year alone (over 30% drop in value in neighborhood). Can the banks come after more money than just the secured house? 
  • January 18 2009 - Stateline
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Answers (3)

Profile picture for wetdawgs
In some states, yes, the bank can come after the difference.     You really need to talk to a real estate attorney for a reality check for your situation.


  • January 18 2009
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Profile picture for sunnyview
That means if you have other money, the bank could sue for the difference. I do not know how often this is happening in NV, you might want to consult with a RE attorney or even a bankruptcy attorney to see if you can negotiate with the bank or protect yourself from a future judgement by trying a short sale to help the bank recoup some of it's losses before you walk away.
  • January 18 2009
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Profile picture for sunnyview
I believe that I read in NV, the bank can get a judgement for the difference between the sales price and the mortgage amount evne after you walk away "A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. Deficiency actions must be brought within 90 days of a foreclosure sale." link
  • January 18 2009
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