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recourse or non recourse mortgage

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Brian Ewing

New member
I'm a disabled vet. My wife is also disabled. I need to know if I can "walk away" from my mortgage and turn the deed back over to the mortgage company?
 


quincy

Senior Member
I'm a disabled vet. My wife is also disabled. I need to know if I can "walk away" from my mortgage and turn the deed back over to the mortgage company?
You always have the option of walking away from your house and mortgage. But there are legal consequences for doing so.
 

FlyingRon

Senior Member
Being a veteran doesn't change whether the loan is recourse or not. It matters mostly what state you are in (and perhaps the type of property financed). If it is a VA loan, the VA can help you if you are behind on your payments, see: https://www.benefits.va.gov/homeloans/
If not, I suggest you talk to the lender about other options (deed in lieu, short sale, etc...) rather than walking away.

Walking away will TRASH your credit rating in any circumstances. Whether there is any monetary issues further depends on whether the loan is recourse or not and how much equity there is in the property.
 

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