Los Angeles Real Estate Attorneys Discuss Walking Away From A Mortgage
Can you safely walk away from your mortgage?
Walking away from a mortgage is a personal decision a borrower makes to walk away from the homes that they mortgaged, due to the fact that the value of real estate fell drastically in the last few years.
Certain states, however, make it the obligation of the borrower to repay the amount to the lender regardless of the circumstances. There are also states that protect the borrower who have borrowed an amount that was in tune with the value of the house or the real estate at that time, but the real estate is now worth much less than the value of the loan.
This is a tricky subject and the last thing that a debtor wants to find out is that they are liable to be sued for making such a decision. This is the reason why it is considered to be a very wise decision to check with a good real estate attorney before making any such kind of resolution.
There are many pros and cons to this action for the borrower, and in certain cases, it would not be a wise decision for the borrower, even if they can do it.
In certain cases, the long-term repercussions of such actions can have an impact on the credit rating of the person, and hamper future financial dealings that they have with the banks.
The Los Angeles real estate attorneys at Sussman & Associates advise many clients about their best options available in order to secure them. And there's a large number of options apart from what people assume. This is much more involved than walking away from the home, or repaying the high amounts that are required of the borrower.
According to “legislature enacted Code of Civil Procedure section 580b” in California a person has the right to walk away from the deal, without fear of prosecution from the law or the lender.
As the real estate attorneys at Sussman & Associates say, much of the decision is also based on certain facts, and these are as follows:
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Can the borrower afford to repay the amount?
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Does the borrower want to leave the house?
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Does the borrower believe that the realty market will recover?
These are also important points that need to be taken into consideration.
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