Q: Mom is 87 yrs old and is behind on a 112,000 mortgage, can she walk away ?
A: The mortgagee might seek a deficiency judgment against her, although it might not be possible to collect such a judgment.
A: Yes, but is likely not a good idea. If the foreclosure sale does not yield enough funds to pay the mortgage in full your mother may be sued by the bank to pay the remaining balance. There are usually much better options for a homeowner than simply walking away. For instance, a short sale, deed in lieu of foreclosure, or bankruptcy may be able to allow a homeowner to walk away without any further liability to the bank.
A: Mom can let lender know that she does not have the means to pay and attempt whats called a "deed-in-lieu of foreclosure" this can help prevent the bank from attempting to collect against any remaining balance owed (if any) after the property is sold.
Good luck to you!
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