Do you need to file bankruptcy if you can't pay the mortgage or you just walk away. ?

Question

Will the mortgage company go after you? Base on ca real estate law.

Answer 1

contact the company and explain your situation.  they may be willing to accept a short sale or allow you to turn in the keys and leave gracefully to avoid bankruptcy.  Sometimes you can negotiate some kind of reduced payments that will allow you time to sell the house, and you can approach them with a buyer who may offer enough of what you owe where the company comes out ahead vs foreclosure.

If you do walk away or turn in the keys, the bank needs to obtain title to the property through a foreclosure or a voluntary surrender of your ownership interest before they can sell it to someone else.

So just call them up and tell them what's going on.  There may be solutions better for you than bankruptcy

Answer 2

You can just walk away, or wait to be evicted (living there rent free) or attempt to short sell the place, or maybe even negotiate with them to lower the payments somehow (look up hopenow.com if you want to go this route).  They may come after you no matter which way you do it, and even if you declare bankruptcy this is only a temporary fix.  If you have no assets though, they may not come after you as they have no reason to - even if they get a judgement they can't evofrce it.

Answer 3

It all depends on how late you are on your payments. Never just walk away ,it will ruin your credit. There are options such as reinstatement,forbearance,loan modification,refinancing(although you don't sound like you could do that) or short sale.There is also option called deed-in-lieu of forclousure which is a voluntary conveyance of title to the lender.

Filing bankruptcy is an altrnative to forclosure but there are no guarantees that it will postpone forclosure  and there are also credit counseling requirements that the homeowner must fulfill.

As I said it all depends on your situation right now.

Answer 4

Yes - if they can't sell the house for what you owe.  Bankruptcy doesn't free you from your debts.

Answer 5

Contact the bank and ask them would they accept a deed in lieu of foreclosure. With that they just take back the keys and you move out. If they have already started foreclosure proceedings they usually won't stop them.  

Answer 6

You don't have to file bankruptcy, but the bank will get the house and everything in it, including all the money you used for improvements and your down payment.

Depending on the amount the home is purchased for in foreclosure, you may still owe the difference to the bank.

Answer 7

Well bankruptcy doesnt actually clear all your bills, if the mortgage company agrees to terms then yes but if not they will still expect the same payment or may still repossess, only do it if you absolutly have to.

Answer 8

I am a loan modification agent.  If you want to keep your home I can help you lower your payments and get all of the payments you owe put in the back of the loan.  You will become current on the loan and help your credit scores as well as get a much lower payment with a fixed rate.   My team of attorneys will save you home if you want to keep it.  Send me a email if you are interested