[FoRK] NYT: BIggest Defaulters on Mortgages Are the Rich; The Power of Half

rst at ai.mit.edu rst at ai.mit.edu
Tue Jul 13 14:12:40 PDT 2010


Corinna Schultz writes:
 > What are the consequences of walking away from a mortgage, besides messing
 > up your credit score? Can the bank go after your other assets? Is it really
 > as simple as just not paying the monthly bill?

In general, the answer varies from state to state.  In some states,
the lender can go after your other assets; in others, the worst they
can *generally* do is seize the house (and evict you, if you're still
there).  But even in "non-recourse" states, the details may vary;
it might be useful to consult a lawyer.

BTW, lawyers can be useful in other respects.  Many mortgages over
the past decade have been sold and resold, and the original paperwork
--- often necessary, by state law, to execute a foreclosure --- has
been known to get lost in the shuffle, with useful consequences for
the borrower:

  http://www.huffingtonpost.com/2009/09/22/whos-got-the-mortgage-pro_n_294169.html

rst


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