FinallyRetired
Thinks s/he gets paid by the post
- Joined
- Aug 1, 2002
- Messages
- 1,322
With the recent concern about subprime mortgages and foreclosures, what happens if someone walks from a mortgage? Let's say someone has a mortgage, the value of their home falls below the mortgage balance, they can't sell, and they decide to just walk away.
Since the home is the loan collateral, does the bank have any option other than foreclosure and taking the home back? Can the bank garnish wages or have a claim against the person's assets?
Of course, they would take a major hit on their credit score, but in really bad times many may consider that the lesser of evils.
Since the home is the loan collateral, does the bank have any option other than foreclosure and taking the home back? Can the bank garnish wages or have a claim against the person's assets?
Of course, they would take a major hit on their credit score, but in really bad times many may consider that the lesser of evils.