I'm planning to stop payment on my mortgage because i can not pay the steep monthly payment and my house is worth 300k less than what i purchased for. I also plan to draw down all of my remaining line of credit i have on my house. I figured if i'm going to lose the house anyway, why not use the rest of the line of credit that i still have to pay all of my other bill. I just want to know if i do this, will they come back and sue me? The assets i have are my cars and my business. If they can, what is the possibility that they will do it?
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.
Yes, there is a possibility the bank will sue you. Keep in mind that the loans and lines of credit are your obligations to the bank, and they happen to be secured by your house. These are not your house's obligation to the bank. You should consult your own lawyer to protect your legal rights.