Legal Question in Real Estate Law in Indiana

We've been trying to sell our house for two years now with no offers so far, we have another cheaper house bought and want to move there but can't afford to keep both places. What are the repercussions if we just move out of the house we're living in and just stop paying this mortgage payment? Will the mortgage company sue us? Will they just try to sell the house themselves? How would just walking away from this house affect our credit status and what legal ramifications are we subjected to by doing that?


Asked on 5/26/11, 5:38 am

1 Answer from Attorneys

A foreclosure will likely be filed. You will be responsible for taxes etc until there is an actual sale. You may be responsible for paying the difference between what it sells for at a foreclosure and the amount of principal, interest, penalties, court costs, selling expenses and attorneys fees. It is likely that this will have a detrimental effect on your credit record.

Depending on the circumstances, you might try a rent to buy agreement, a deed in lieu, a short sale or a modification. I suggest a consultation with an attorney to assist you in determining options that may be specific to you. Good luck.

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Answered on 5/26/11, 6:23 am


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