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Posted by Jim V on September 27, 2006 at 00:23:52:
In Reply to: What happens if I just walk away posted by Jay on September 26, 2006 at 15:44:23:
Jay,
Foreclosure has a huge impact on credit. If you stop paying on the note, your credit report will reflect 30, 60, 90 day lates on your home loan which often will result in higher rates for any credit card debt you may carry, and an increased cost for new financing.
If you exercised your last resort, you'd pay less in financing for the new property if you did it before any default on your existing loan.
I'm pretty sure that CO allows the lender to seek a deficiency judgment if they suffer a loss due to the foreclosure. A lender often wouldn't seek a deficiency if the borrower doesn't have the assets to pay it, but if you have the income and assets, you should be aware that there could be longer term repercussions.
: We made an extremely bad investment 4 years ago when we bought our condo. There are several foreclosed units in our community, making it impossible to sale. We're asking 30% less than we paid and can't even get buyers to look at our property. The neighborhood is going downhill fast. I have personally witnessed drug deals, gang activity and people fornicating in park cars outside our house.
We want out, right now we have good credit and are current on all bills. But I am willing to throw it away to get out.
As a last resort we are considering buying a new house while our credit is still good and waling away from the condo. Anyone have any thoughts? What would happen if we just cut our loses now and let the bank take it back.
