As bankruptcy lawyers, we do everything we can to give clients the best advice. As a busy bankruptcy law firm, we get all kinds of clients in all kinds of situations. We also see people that, for some reason, will do everything in their power to avoid filing bankruptcy. I am sure we have all heard about these “walk-away” programs. Rather than filing bankruptcy or making their mortgage payments people are deciding to save there money and let the bank foreclose. That way, they have saved about 6 to 8 months of mortgage payments rather than dumping into a property that they cannot maintain.
But, like everything else, there is a downside. First, you will have a foreclosure on your credit record which is not a good thing. Second, and , as bankruptcy lawyers, we feel most important, you could be liable for the difference between what you owe and what the house sells for at auction. This is what is known as a deficiency judgment.
Many states, like California, are non-recourse states. This means that the lender cannot receive any more money that it gets at the auction. But, there are exceptions to this rule that you must discuss with an experienced bankruptcy attorney. If the lender can go after you, you may be liable for the difference, interest, fees and costs. It is very important that you understand your rights and options before entering into one of these “walk-away” programs.
We at the Law Office of Harold D. Thompson are Del Mar Bankruptcy Lawyers dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a San Diego Bankruptcy Attorney that will fight for your rights. Call us TODAY at 619.615.0767 or visit one of our two websites at www.ThompsonLawSD.com or www.MySanDiegoBankruptcy.com
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