What will happen if I walk away and foreclose on a Primary home mortgage loan? Would I still be in debt?

The house is in Las Vegas, and it’s a Primary home Mortgage.

I live and work in Los Angeles, and I live in an apartment, I don’t own any other property.

I was wondering, what would happen if I walk away from the Mortgage and foreclose it, would I still be in debt? Could the bank sue me and take money out of my account and paycheck?

Thanks.

By | 2013-08-28T05:19:16+00:00 August 28th, 2013|Mortgages Home Loans Interest Rate|1 Comment

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  1. MagnusMoss August 28, 2013 at 5:46 AM - Reply

    Yes. The bank would sell the house. Legal expenses would be added to what you owe. The money they got by selling the house would be deducted from what you owe.

    The bank can go after you personally for whatever is left. I’m not sure about debt collection laws in Texas and California, but if they are like those in my state, they could take money out of your bank account. In my state they would need to go to court to get permission to garnish your wages.

    Having said that, they *MIGHT* not bother. Legal fees in going after you are expensive, and sometimes the bank may figure they aren’t worth it. Are you feeling lucky?

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