Re: Default on home loan

You have a lot of options short of defaulting. If you are really willing to just walk away you can attempt a short sale - finding a seller that can bring in a fair market price, or close to it, and having the bank accept it. You can offer a deed in lieu of foreclosure. You can attempt to modify your loan or restructure it if you are interested in keeping the house. Each of these options has a different impact on your credit rating and possible tax consequences. You should consult your mortgage company to see what they are willing to do. They will have either a "work out" or loss mitigation department. Consulting with an attorney will help, and also a real estate agent if you want to do a short sale.

Re: Default on home loan

You can also do bankruptcy if you also have credit card debts.

Re: Default on home loan

You can also do bankruptcy if you also have credit card debts.

Re: Default on home loan

No, your credit will not be ruined forever, but 7 years is a start. If you file for bankruptcy, it will be on there for 10 years. And, the bank may come after you for any deficiency if they follow the proper steps. So, you could have them pursuing you for a while.

The other posters gave you some other options. You need to consult with an attorney about your specific circumstances.

Re: Default on home loan

I would agree with what others have mentioned. There are various options and if you wish to preserve your credit you may want to explore all of your options before walking away from the house.

Feel free to contact my office if we can help

Good Luck!

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