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 a debtor wants is to find out they are liable to be sued for making such a decision. This is why it is considered a wise choice to consult a good real estate attorney before making any such resolution.
There are many pros and cons to this action for the borrower, and in some cases, it might not be a wise decision, even if it is possible.
In certain cases, the long-term repercussions of such actions can impact a person's credit rating and hinder their future financial dealings with banks.
The Los Angeles real estate attorneys at Sussman & Associates advise many clients on their best available options for securing their interests. There are numerous alternatives beyond what people typically assume. The process is much more involved than simply walking away from the home or repaying the high amounts 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:
-
Can the borrower afford to repay the amount?
-
Does the borrower want to leave the house?
-
Does the borrower believe that the realty market will recover?
These are also important points that need to be taken into consideration.
See also:
For more information about our legal services, please call us at 800-233-8521.
