Legal Question in Real Estate Law in Florida

No, you owe the money on the loan and if you have any assets, the bank will go after them. The bank does not want your home....What would the bank do with your home? Add it to the growing oversupplied inventory of vacant-getting-run-down properties that are sitting on the market already?

In order to "walk away" from your obligation, you must convince the bank that you have no money. They are not convinced that this is the case when your loan is current, and borrowers who send letters begging to be "let out" of their obligations do not garner sympathy from bank clerks, and especially not from bank CEO's.

Unfortunately, responsible folks, who still have jobs or assets are really pretty much "stuck" with paying loans for homes that have dropped in value. These tax payers are paying for the "bail out" of the banks and irresponsible home buyers who borrowed more than they could afford. Keep this fact in mind when you go to vote next November.

You can let your loan go into foreclosure, the bank will eventually take the property, and sell it for less than it's worth and then charge you for the deficiency. The bank will pay a lawyer $10,000 to chase you for the $38,000 or more that you will owe.

OR

You can let your loan go into default, put the property on the market, try to do a short sale, BUT the lender will know if you have any money, because you will have to disclose this.....then the lender will have to decide if it wants to let you walk away from $38,000. Don't count on this.

My guess is that, if you walk, the bank will go after you, if you have money, a job, or a boat, car, truck, equipment, tools, etc. Unless you are on the brink of bankruptcy, your best bet is to see if you qualify for a HAMP loan modification, (again, you have to be in default and have no reserve funds or liquid assets) or refinance the loan at a lower rate (even if that means paying down the balance owed) and stay where you are. You will not protect your credit if you walk away, and walking will cost you more in money, time and headaches than you can even imagine.