One of the major components of deciding whether to stay in your home or simply walk away is whether you will owe money should you decide to walk away. In Washington State, the foreclosing lender (typically your first mortgage) cannot pursue a deficiency judgment except under rare circumstances (a judicial foreclosure – which is extremely rare). Unfortunately, all other mortgagees and lines of credit can pursue a deficiency. However, it is possible to wipe them out by filing a Ch. 7 Bankruptcy or Ch. 13 Bankruptcy.
In sum, if you have just one mortgage, you will be able to walk away from your mortgage without owing any money. If you have multiple mortgages, the decision process will be more complicated.
For information on Washington Foreclosure Laws, contact us today.