can I be sued?

[85percent]

What is the name of your state (only U.S. law)? California


Hi, I bought my home 4 years ago with a fixed 30-year FHA. I recently refinanced the house 6 months ago into another fixed 30-year FHA. If I were to walk away from this home so that I can move and rent a place in a different part of the state, can the lender actually sue me?

I owe $290,000 and the home is "valued" at $285,000..

 

[Zigner]

Is there a reason you can't continue to meet your contractual obligations?

ETA: Yes, the lender can pursue whatever legal means are available to force you to uphold your end of the deal.

 

[ecmst12]

It would, of course, be better for you to sell the house and just worry about the negative equity amount rather than letting it get foreclosed on.

 

[Mass_Shyster]

If I were to walk away from this home so that I can move and rent a place in a different part of the state, can the lender actually sue me?

Not if you file bankruptcy first.

 

[Zigner]

Not if you file bankruptcy first.

OP has not given us ANY indication that bankruptcy is a viable option.

OP will likely pay just as much in rent as s/he's paying on the mortgage note.

 

[85percent]

Yea I'm in no financial hardship, but I need to move. I don't mind losing the equity if I sell, the problem is that buyers want to pay $30k to $40k less than what I owe. So I wouldn't even be able to sell.

 

[Zigner]

Yea I'm in no financial hardship, but I need to move. I don't mind losing the equity if I sell, the problem is that buyers want to pay $30k to $40k less than what I owe. So I wouldn't even be able to sell.

"It's time to move on" is not a valid reason to renege on your deal

 

[HomeGuru]

What is the name of your state (only U.S. law)? California


Hi, I bought my home 4 years ago with a fixed 30-year FHA. I recently refinanced the house 6 months ago into another fixed 30-year FHA. If I were to walk away from this home so that I can move and rent a place in a different part of the state, can the lender actually sue me?

I owe $290,000 and the home is "valued" at $285,000..

**A: the answer to your question lies within the default provisions in your mortgage docs.