Walkaways… What Are They?

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Mortgage law experts say the incentive to walk away from a home loan is highest in states that have anti-deficiency statutes, which prohibit lenders from suing borrowers for additional funds after foreclosure. California is one of those states.

These anti-deficiency laws make a huge impact on foreclosure rates  because they are basically “get out of jail” cards, said Professor Zywicki of  George Mason University in the Washington D.C. area.

The handful of non-recourse mortgages states includes, in addition to California, the high foreclosure states of Arizona, Florida, Texas, and even Washington.  The statutes generally prohibit or limit a lenders’ ability to go after the borrowers’ assets to satisfy the unpaid mortgage debt.

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Ron Largent is a Realtor, business owner and longtime Redding resident. He can be reached at ronlargent@yahoo.com or ronlargent.yourkwagent.com.

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is a Realtor, business owner and longtime Redding resident. He can be reached at ronlargent@yahoo.com or ronlargent.yourkwagent.com.
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2 Responses

  1. Avatar gamerjohn says:

    Practicing law again? So it would be better if a bank can hound a broke borrower forever after they take back his house? Granted that usually the equity in the house disappeared faster if the bank lent too much money based on its funny money reckless loans, the bank should bear that burden since it was promoting the crazy, sloppy loans in the first place.

  2. Avatar Rick Goates says:

    The banks are Guilty of handing out loans to anyone that could breath and
    walk up right…And borrowers need to take a little personal responsibility
    also.No one put a gun to anyone's head to take out that second or Equity line
    for that boat or that new SUV or that vacation or new pool!

    Granted there are some that are upside down right now that did not take out a
    second or equity line but lost a job or had an accident (See Mr Mudford)
    etc…those are the ones that I think many, including myself, feel very sorry for.

    Pointing the finger is the easiest thing to do for anyone…the hardest part is to
    admit that each person got themselves into the situation that they are in.

    No one saw this coming…"the down turn".- if they did then lenders and agents
    would not have lost their homes. What we do know is that the market is cyclical….
    so it Will be back up…it's when and not if… We can All learn something from what
    happened…and if we don't ?? Well,we get to do it all over again someday…

    Who do you think will get the lesson first, the banks or the people??

    Who will forget first, the banks or the people?

    Rick