I can answer questions on if you are just walking away from home

[scsurfer]

I post this because when I was first looking for info on just "walking away" from my home, I couldn't find much info on the net. So I would be happy to help answer any questions for someone facing my experience/situation.

My details, Single family home in Ohio, 80/20 loan. Was in smaller town where the big company in town closed up shop and left (1 in 3 people in town worked there). I had worked there but got a good job in another state. Home value dropped overnight 40-50%. I did try to sell for 1 year (this was before company left - I saw it coming, only 4 people ever even viewed the home). Was deeply underwater in house. Crime in town began to increase rapidly and my wife and kids were there mostly by themselves since I now worked in another sate and only made it home a few times a month. Short sell not an option, no one was buying in the town, and I mean no one. Deed in Lieu was not an option. Only option left was to just walk away and move to the state where my new job is located . I did see a bankruptcy lawyer for advice and knowledge on the laws/process as part of the decision process. Housing in new state was secured before first payment was missed (the first missed payment is a big credit hit). From first missed payment to the sheriffs auction was 11 months. Credit tanked but we deal only in cash now and thank God I have a stable job.

Please feel free to ask me any questions. If you wish I will reply in PM for privacy. Hope any info from my experience helps.

[sadandconfus]

did you ever file for bankruptcy?

[flower04]

What did you do when you left, had they put up a "for sale" sign or something? Also, did you leave anything for them, like owner's manuals and that kind of stuff? For example, when we move I would like to pass on to the future owner information about an electrical problem that needs to be fixed but we never have had the $ so we just found a way to function without it.
ALso, did you clean it totallyor leave stuff there?

[DeadManCrawling]

Is Ohio a deficiency state? If so, what was the outcome?

Did you file BK as well?

Did you get any questions from the lender/creditor, about the fraud of buying a new home while you knew you were going to abandon the original?

Did homestead law come into play?

Was the loan originally a purchase money loan, and then refinanced into the 80/20?

What is the timeframe you are talking about? Is the foreclosure on the first home complete? Timeframes are very important, and many folks would like to know as we are going through similar situations.

Did you infrom the neighbors?

I note that you said in this post, or another, that you have not paid HOA fees. This is in direct conflict with federal law. I am curious how you did this and what your legal justification is/was. Can you explain how you did so, so the rest of us can benefit from your experience?

Best wishes,

-dmc

[scsurfer]

did you ever file for bankruptcy?

No and not planning to.

[scsurfer]

What did you do when you left, had they put up a "for sale" sign or something? Also, did you leave anything for them, like owner's manuals and that kind of stuff? For example, when we move I would like to pass on to the future owner information about an electrical problem that needs to be fixed but we never have had the $ so we just found a way to function without it.
ALso, did you clean it totallyor leave stuff there?

We completely moved out of the house in June, had all utilities turned off 5 days after we moved out. I did leave an old fridge and some other stuff we didn't take in the garage. We left the house in a broom clean state. We did leave owners manual for the couple of appliances we left there. I did not tell the bank we left, in fact I never once talked to the bank except once after the first missed payment I called to see if they would be interested in a Deed in Lieu, which they weren't, otherwise the only correspondence I had with them was what they sent me thru the mail. So the bank nor anyone else had permission to enter the property.

[sadandconfus]

scsurfer, what about the fact they will try to come after you for a deficiency judgement?

[scsurfer]

scsurfer, what about the fact they will try to come after you for a deficiency judgement?

We'll yes that is a possibility but in a lot of cases they don't always pursue DJ. In my case they have 2 years to come after me (per Ohio law). I honestly don't think they will.
First I moved to another state, they would have to come to that state, retain a law firm in my new state and sue me for DJ in my local court system. This would cost them a lot of money.
Second, I had an 80/20 loan. They only Sued/foreclosed on me for the 80 loan and wrote the 20 loan off as bad debt, thus greatly reducing what I owe them.
Third, they know they'll never get the money from me, I don't have it nor really any assets, I'm renting from a relative who owns the house outright so I can stay forever if I wish, I have a large amount of CC debt, own my car, etc.,also they can't garnish my wages (per my new states law) even if they won judgement against me.
Fourth, they are one of the banks that received Federal Loan money and for the amount I would owe them (under 100K) would make more sense to write off to lower their liability.
And then fifth if they do make the journey to my new state to sue me for DJ , then I will file for BK.

But in the end, even with all this, the stress of the situation is still there....

[scsurfer]

Is Ohio a deficiency state? If so, what was the outcome?
see above post

Did you file BK as well?
no, but not completely ruled out yet

Did you get any questions from the lender/creditor, about the fraud of buying a new home while you knew you were going to abandon the original?
I'm renting now

Did homestead law come into play?
no

Was the loan originally a purchase money loan, and then refinanced into the 80/20?
No, originally an 80/20, 2 years fixed then variable rate

What is the timeframe you are talking about? Is the foreclosure on the first home complete? Timeframes are very important, and many folks would like to know as we are going through similar situations.
It took 11 months from first missed payment. It was a completely uncontested foreclosure, meaning I responded to nothing and let things play out

Did you infrom the neighbors?

the home was in a small downtown, not a subdivision or the like, I had a few neighbors and told the ones that I was friends with, one thing to understand is that this was happening all over town due to the main employer in the town pulling out. Kind of like the steel plant closing and the town dying.

I note that you said in this post, or another, that you have not paid HOA fees. This is in direct conflict with federal law. I am curious how you did this and what your legal justification is/was. Can you explain how you did so, so the rest of us can benefit from your experience?
sorry for any confusion, I did not have HOA, must have mistated.

Best wishes,

good luck to us all
-dmc

[HHM]

Keep in mind, the statute of limitations is merely a defense to a lawsuit. Once the difference gets sold to a junk debt buyer, they can still call and come after you even if the Statute of limitations has expired. Also, you mentioned moving, guess what, they can still sue you even if the statute of limitations has expired (also, they just have to sue you at your last known address and merely get a process server to give an affidavit that they tried searching for you on various databases), unless you appear in court to raise the defense, it is waived.

Regardless if they come after you, there is still the tax issue. Even if you never actually receive the 1099, as a tax payer, you are still required to disclose and, if you qualify, raise an exception to paying the income tax.

[scsurfer]

Regardless if they come after you, there is still the tax issue. Even if you never actually receive the 1099, as a tax payer, you are still required to disclose and, if you qualify, raise an exception to paying the income tax.

Thanks to Congress and to which I qualify, If the bank forgives the debt and sends me the 1099C it won't count as taxable income.

http://turbotax.intuit.com/tax-tools...ship/5512.html