Walking away form a mortgage is a term for when a homeowner simply abandons payments on their mortgage. While this may not necessarily be an illegal act, it may come with some serious consequences, and as such, is generally unadvisable. However, many consumers end up walking away from a mortgage every year, due to the inability to keep up with payments.
There may be some instances when it may be acceptable to walk away from a mortgage, such as if the homeowner discovers that the mortgage was actually presented to them through a scam or through mortgage fraud. However, even so, it’s usually best to obtain legal representation, and formally get out of the contract before abandoning the mortgage.
Ceasing mortgage payments will put you in “default” status with the mortgage lender. This can lead to consequences such as:
Thus, one needs to understand the various effects that will happen upon walking away from a mortgage. While it may seem like a short-term solution, it may lead to more legal issues to deal with in the future.
Knowing how and when to walk away from a mortgage can help you avoid unnecessary expenses and legal woes. You may need to hire a qualified real estate lawyer if you need assistance with any types of mortgage or real estate issues. Working with an attorney early on can help save you avoid legal issues down the road. Also, your lawyer can provide you with legal representation if you need to participate in a real estate lawsuit.
Last Modified: 06-30-2015 09:53 AM PDTLaw Library Disclaimer
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