I have had many clients go through the devastating process of a foreclosure. In some cases, people give up, and decide to walk away from their home and let it be sold at an auction. This is a strategic foreclosure decision that many people think will get rid of all of their debt on the home, and most of the time, they are mistaken. Walking away from your home during foreclosure does not mean you are walking away from the responsibility of the loan.
Every situation is different, but most of the time the reason people make the decision to go through a strategic foreclosure is the same. The assumption is "If I can't pay my mortgage, isn't it worth it to just give up my house and walk away?" This seems reasonable, but there is a little problem called the deficiency balance that will most likely keep your plan from easily erasing your debt.
If you decide you want to let your home go into foreclosure, I'm sure you know it will then be sold at an auction. The lender that forecloses on your home is going to sell it to the highest bidder at the auction. The problem you will most likely have is that your home sold for much less than what you owe. The difference between what you owe and what your home sells for is called the deficiency balance.
When there is a deficiency balance on your home, the mortgage lender has the right to come after you for that money. As a Missouri bankruptcy lawyer, I have seen that they will take drastic actions on you to get their money back, such as garnishing your wages, freezing your bank accounts, or taking other property that is important to you.
Walking away isn't as easy as you thought, is it? If you are about to be foreclosed on and thinking about walking away from your home, you should do some research before you make a mistake that puts you into more trouble even after your foreclosure. If you are experiencing the pressure of losing everything, before you make a drastic decision, sign any forms or talk to any lawyers, you need to read my FREE book "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You may find that you don't even need a Missouri bankruptcy lawyer if you act quickly. Not many Missouri bankruptcy lawyers will give you that advice.
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