We published two posts about the advantages of simply walking away from your mortgage if you are seriously “underwater.” Brent T. White, Associate Professor of Law at The University of Arizona made that recommendation in an article he published. Depending upon what state you live in, this may not be sound advice.
Banks in many states are not accepting a walkaway as satisfying your loan obligation. Especially in Florida where laws covering deficiency judgments strongly favor the banks. Fortunately, Arizona is a state that prohibits a deficiency judgment following a foreclosure. However be careful. If you refinanced you may have signed away your protection.
You can read an article on bloomberg.com with greater detail. You can find our prior posts here and here. Your best bet is to get professional advice before walking.
Don Grafues
Resource: REALTOR.org & Bloomberg.com
Resource: REALTOR.org & Bloomberg.com
I finally decided to write a comment on your blog. I just wanted to say good job. I really enjoy reading your posts.
Comment by Tony Orlando — January 30, 2010 @ 8:44 am