Profile picture for oxboy

what advice if considering strategic mortgage default

live in Redwood City, Ca. My property has lost approx $180,000 in value since purchase in 2007. Is there a lawyer I could consult with if thinking of a strategic mortgage default or walk away.
  • December 16 2010 - Redwood City
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (2)

Profile picture for Mills Realty
Definitely consult with an attorney, but if this is your principal residence and the loan is a purchase money loan you have very little to worry about.
  • December 16 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for shasta_steve
Well it is a good idea to talk to an attorney and an good tax person before you try it but there are several good websites too.  One I used to get on was called loansafe.  Mostly just lots of other people in your shoes.   Be careful if you go see a lawyer.  My friend went to three and they all said different things.  Get a good one. 

First off you need to know your state laws.  In California your loan is non-recourse (they can not come after you for more money) if the loan is purchase money and you did not refinance.  Even if you did refinance they would have to do a judicial foreclosure if they want to recoup any of the money and they almost never do it. 

I recently let a rental property go back to the bank and am pretty knowledgeable about how the law works in California and if you would have any tax problems but almost every case is different.  Mostly depends on if the property is or was your primary residence.  If you borrowed money against the property or if you have a second.   
  • December 16 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.