They can walk away because it is in the documents they signed that they have the right to do so. I see them all the time. Like I said before, it is not YOUR HOUSE it is the banks until you pay them in full.
From my understanding, and anyone can chime in here, the new BK laws protect the Credit Card companies but you can still BK out of a deficiency judgment from a bank. I have a few friends who are doing it now…..
SD Realtor makes a good point. It is very important to get them to agree to things in a contract when you are going through the foreclosure process. I do know that if they do not do a “judicial foreclosure” they waive the right to bring a deficiency judgment against you later. You can’t foreclose twice on someone…
As far as the banks being screwed (long term), not a chance, they are the bedrock of our economy. Benny will print money for them to lend from here to the end of time…..and Georgie will pass all these laws and acts to protect them from utter failure.
Watch the movie “maxed out” when you get a chance.
