If You Eat Your House Will That Void Your Mortgage?

Real Estate Agent with RE/MAX Gold DRE# 01437147

There are many ways of trying to get out of paying a debt.  One of those debts is a home mortgage.  Many people are struggling these days to pay their mortgage due to higher payment amounts due to rate increases, or loss of income, divorce, medical bills, etc.

But I came across one individual that thought she would just eat her house Ciara eating her gingerbread house and then since there would no longer be a house, then of course there would be no longer a mortgage, right? 

I'm thinking that it's not that easy.  Eating this gingerbread house might make Ciara's imaginary debt go away, but once she's done with it she'll have the worst stomach ache EVER!

The situation that many people are in today with deciding whether to just walk away from their real mortgage and let the bank foreclose, or to perhaps talk to a Realtor like me and see if trying to do a Short Sale is enough to cause anyone to have a stomach ache as well.

I always recommend that everyone talk to a Certified Public Accountant (if you're in the Stockton, CA area the best is Peter Holtz) or to a real estate attorney, or both.

As a real estate professional I do not give legal advice, nor do I sell home loans.  I sell homes for sellers and find great deals for home buyers in the central valley of CA, mainly in the Lodi and Stockton areas.

Bottom line, as a homeowner you have options if you are upside down with your mortgage.  Whatever you do, don't resort to eating your house.  Be sure and seek out the advice from the professionals and make sure that you open all mail pertaining to your home, and save everything that you get in one place for easy access. 

I hope you all have a Happy Holiday Season!





Comments (4)

Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Liked the post about eating your house. But here is the point. If you are upside down so what ? If you do not have to sell why not love and enjoy your home? I really do not get the mentality that says let's walk away. This s nt to say folks need to sell But that is a different story

Dec 15, 2010 08:07 AM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Thanks for your comment.  I agree that if you don't have to sell then just stay put.  I'm WAY upside on my home, but I love it and it still meets my needs for size and location.  I'm not leaving.

But, as I pointed out in the 1st paragraph of my post that IF you are in a situation that warrants drastic measures of walking or short selling, then at least seek professional advice and not try to just do it on your own.

Dec 15, 2010 08:46 AM
Jack Mossman - The Nines Team at Keller Williams in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams in Stockton

Randy!  Great job .... I'd rather eat the house, one bite at a time!  Unfortunately, there's not "pat" answer - every homeowner is individual and so is each lender.  Even the same lender will respond differently to different sellers.  Getting advice from a number of sources, then sitting down and making a plan ... but make the plan with all the options on the table!  Thanks for sharing ... your thoughts and the great photo!

Dec 15, 2010 12:01 PM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Hey Jack, you're right...there are so many variables and every situation is different.  This is why it's SO imperative that people seek professional advice when faced with these decisions.

Dec 15, 2010 12:46 PM