Can I "Walk Away" from my property/mortgage?

Of course you can, but the real question is "should" you?  The answer to that quesion turns on the answers to these questions:

• What happens if I let the lender “foreclose” on the property?
• Can the lender get a deficiency judgment?
• What is a deficiency judgment?
• Do the Arizona anti-deficiency statutes apply to me?
• Do the anti-deficiency statutes apply to investment property?
• Do the anti-deficiency statutes apply to VA or FHA loans?
• What is the Mortgage Forgiveness Debt Relief Act of 2007 and, more importantly, does it apply to me?
• What are my alternatives? (i.e., deed-in-lieu, bankruptcy, short sale, etc.)
• What is the impact on my credit of a deed-in-lieu, bankruptcy or short sale?
• Can I get a loan after a foreclosure, short sale or bankruptcy?

As you can see, determining whethe or not you "should" Walk Away from your property requires some complex analysis and the available options are determined by your specific facts.

Real estate agents/brokers may try to help you with these questions, but they don't have the answers and, even if they do, they are prohibited by law from giving you legal advice.  So the simple (and obvious) answer is -- talk to a real estate lawyer.  That is the only way to get the correct answers to these (and many other) questions, thereby allowing you to make an informed decision.

Comments

[john beck]

This information is very helpful. Your post/article really interesting. Thank you for the reference.

[david mallipudi]

I own a rental home in kingman Arizona. I live in California. The property value went down and rental rates also went down. I am not able to sell the property for the money that I owe on it. I have two other properties in California. My concern is what will happen if let the Kingman property go into foreclosure? I have to come up with 300 to 4oo dollars every month to pay the Mtg.

Answer by Carlton Casler: You are experiencing the same problem as many other homeowners and investors. The answer for the Kingman property is determined by Arizona law (i.e., no matter what state you live in). There are many factors that will determine what the consequences will be if you allow the Kingman property to go into foreclosure. I simply do not have enough facts about your situation to give you an accurate answer. Look at the following postings on this site: (1) "What if a residential rental property goes into foreclosure during the lease?" and (2) "Can I "Walk Away" from my property/mortgage?" This two postings may help, but the only way to know FOR SURE about your situation is to consult a real estate attorney.

[australian investment properties for sale]

I don't know about this topic. But By reading your post I got impressed. Now I am interesting to know more about this.