I don't know what state you live in, so what you say may be correct in your jurisdiction, I don't pretend to know the law of all 50 states. I am only licensed to practice law in three states. In general, if one owes a creditor, including a mortgage company, more than one is able to pay, one is not able to walk away from that simply by turning over the collateral, here, the house.
One exception is a what is called a "deed in lieu", that is, the lender agrees to accept the deed to the house in lieu of foreclosure. Certainly, the creditor (lender) may be willing to accept the deed without the cost and trouble of foreclosure. The willingness of the lender to do that depends on individual matters, like, whether the borrower can be squeezed for the rest.
At any rate, we can agree that borrowing more money than one can repay isn't smart. |
