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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (51407)	4/4/2006 9:40:13 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 306849

But the new BK law might stop you. Under the new law, even if you walk away from the house, you owe any money the lenders can't receive from selling the house. Unless the money owed is "purchase money" in a purchase money state (like California). Say you bought a house for $200K. You refi'd a few years later for $250K. Then used a Heloc for another $50K. Then walked away. Lets say the bank sells the house for $225K. You still owe $75K plus expenses - even if you go BK (with some exceptions).