Legal Question in Real Estate Law in California
Should I walk away now instead of later
Although the RE market has rebounded, my mortgage balance is still higher than market value about $150,000. My loan is a refinance cash out, I got NOD with
a trustee number. Lender also is proposing a 3% rate for 5 years but there is a condition of a balloon payment after this 5 years, they said they can renegotiate in 5 years.
My concern is: If in 5years, the negotiation won't work out for me, I won't be able
to walk away with no deficiency. If I walk away now, I realize a loss of $110,000, but there will be no deficiency because they have chosen a non judicial foreclosure process.
Please advice. If you can negotiate with my lender to protect me and my house until I can sell my house to get out even, I will be happy to hear from you.
Appreciate very much.
1 Answer from Attorneys
I think this is a business decision, not a general legal issue. To the extent you might benefit from having a lawyer negotiate on your behalf, you need to shop locally. Avoid recently set-up loan-modification "specialists" who want an up-front fee; their success rate is low. Find someone on Main Street in your town that you can drop in on at lunchtime to see how things are going. And monitor it frequently.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
