Buying a foreclosed home.?

Question

We had bought a home valued at $700K. it has now dropped in value. we're thinking about walking away, and letting it foreclose. it's not because we cannot make the payments, it's because it's not worth paying so much money on a house that's not even worth it. since we're giving it up, can the bank come after our assets?

Answer 1

Hi, I have been reading a lot about cases like yours and let me said that base on my research the answers is yes they can go after you legally, after the bank foreclosed, come a whole lot of fees that they will add to your balance (credit will be ruin) they will sell the house an any balance between your Mortgage and the sell price will become your legal responsability, before you make any move like walking away get some legal and finance help so you dont end in a worse situation than before.  laws change from state to state so legal help may help you find the best route to follow. Good luck.

Answer 2

If you can afford the payments and have other assets, it is entirely possible that the lender will seek legal redress to recoup its losses.  Your approach is rather silly, given that you can afford to make the payments on the house.  It appears that you purchased the house with the notion that it would forever hold that value, or increase beyond $700K.  Would you feel the same when you purchase a brand new car, and discover that it has dropped in value as soon as you drove it out of the dealership ?  The same applies to your house.

If you haven't figured out why you won't buy another house, it's because no one will give you a mortgage loan again for at least five years after you've gone through a foreclosure.  Of course, if you have the cash to buy one, that would be different.

Answer 3

You shouldn't let you house foreclose because you will never be able to buy another home again.