Walk away?

[stretched out]

1. What are the financial repercussions when one simply walks away (an income property gone bad) from a mortgage, letting the financial institution have the property?
2. How long for any repercussion to become effective?

[PetMom]

This would be obviously bad for your credit.

One thing about this is there is a trend now for
apartment landlords and even employers and sometimes also
car insurers to check credit and this can affect you
for years in getting an apartment, a job and paying
higher ins. rate.

You might want to call the bank and ask about this, any
suggestions, if they will work with you, distress sale, etc...

[Seeker]

Originally Posted by stretched out

1. What are the financial repercussions when one simply walks away (an income property gone bad) from a mortgage, letting the financial institution have the property?
2. How long for any repercussion to become effective?

I don't know if it's even possible for you to "walk away" from an "income property" mortgage without affecting your regular mortgage.... Have you homesteaded your residence?

If you have other assets (your home, for instance), the "income property" financial institution may be able to place a lein on your personal property and pursue you in court.

Depends on many factors. In your situation, I would talk with a lawyer before talking with your banker about the income property.

[Seeker]

But then again, I could be misinterpreting the question.

Two properties? or one? Do you live in the income property that you are considering abandoning?