can I legally walk away from my house being so far behind on mortgage?
Answer
Not without a lot of potential consequences. The bank could foreclose. They may (but are not obligated to) accept a deed in lieu of foreclosure. They may be able to force you into bankruptcy if it helps them. Your credit rating will be trashed. If they foreclose they may be able to get a "deficiency" judgment which is the amount you owe (which could include costs of restoration if you abandon and the place falls into disrepair, plus taxes, insurance, interest, attorney fees, court costs.....) less whatever the net proceeds may be that they get on a foreclosure sale, and while there are some tax benefits for you at least this year, if could become phantom income if the foreclosure is in a future tax year and then there could be IRS issues. You may be able to work out a "short sale" of the property. You may be entitled to a loan modiciation...... LOTS of open issues here. Time to sit with an attorney, review your particulars, identify options, and act on them.
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