You Could Just Walk Away…Or Not!

Remember that a recourse loan means that the bank reserves the right to sue you for any payments not covered by sale at foreclosure. Again we can discard any moral questions. This was a deal made between a large bank and you, so any coercion certainly came from the bank. Although as a practical matter, of course, this may still leave you with very big problems. Obviously you shouldn’t do it lightly. But again you should not be burdened with moral considerations. And they will almost certainly trash your credit report for seven years. Should you still walk away, though? Well, sometimes you just can’t stay. And the answer to that question is that without a doubt, it was bad banking that led us here. See, banks can borrow for almost no interest from the United States national bank, known as the Federal Reserve, or just “The Fed.”. All they had to do was find a home for that money and the banks could make a big profit, so money poured into real estate and the idea developed over many years that “real estate never goes down.” If houses “always went up,” then banks could lend increasingly large parts of their price to the buyers.

You shouldn’t even vaguely get involved with the process if this is the case, since you could be putting your whole life on the line for this one person. When dealing with federal bonds, it’s advisable to be more cautious than normally; your bondsman will be able to give you advice on the various things you’ll need to do and the process in general. The only problem with the scam, from the bankers’ point of view, is that they are allowed to mark to make believe only as long as they don’t start foreclosure! Get help from your Houston bail bond company right away to save you from further trouble. The Cocoa Beach bail bonds process is generally quite simple, and is only complicated when someone doesn’t cooperate fully with the other parties.

Because in that situation there is very little potential down-side. So would I walk away from my house if I couldn’t make the payment? Again this depends largely on how much you have to lose. But it may very well be that if you can’t afford to pay, and if you stop paying, the bank can’t afford to foreclose on you and try to take the house away from you. Remember this: in bankruptcy, the mortgage is “secured” by the house, but anything left to pay after foreclosure is “unsecured.” If you go into bankruptcy, you can wipe off the extra debt and walk away from it. And if my financial condition was such that I was considering bankruptcy I would be doubly so-inclined. You could walk away from the house but still be saddled with the house payment. Perhaps I should have said, “stop paying.” And the wild-cards are that it may be that the bank holding your loan cannot foreclose, or it may not be willing to foreclose whether your loan is recourse or non-recourse.

They’re saying to the bank, in effect, “You want it? It’s yours.” Should you? The simplest question arises where you are underwater on a non-recourse loan. Realizing that the event may go onto your credit report and mess you up that way (although in my view it shouldn’t), and realizing that there’s still a question of where you’re going to live, if you can work those things out there’s no pressing economic reason to continue to make payments. And in my view no moral reasons not to “walk away” at all. Punitive damages is an amount of money a jury is entitled to award to a plaintiff against a defendant and is supposed to discourage the person who committed the assault from ever doing it again and “send a message” to others who might be thinking about doing it that “crime doesn’t pay.” These are the big judgments you hear about, and they’re designed so that you will hear about them and not do what the defendant did.