Does it ever make sense to walk away from a house?

The house we bought in 2007 is seriously underwater and we're having trouble paying the mortgage. We're thinking about just walking away rather than being foreclosed on. Is that ever a good idea? .

Davis, CA -

Attorney Answers (1)

Frank Wei-Hong Chen

Frank Wei-Hong Chen

Real Estate Attorney - San Marino, CA
Answered

Your question is a bit unclear because "walking away" normally means the same thing as a foreclosure.

Alternatives to a foreclosure include a short sale and a deed in lieu of foreclosure.

As for which alternative suits you best, I don't think it is possible to answer your question in the abstract. Is the property located in California? How much is "seriously" underwater? How is your credit score? Are you on the verge of filing for bankruptcy?

Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in... more

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