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Byron Said:

Can I default on my home mortgage and walk away without lender going after my other assets?

We Answered:

If you own a house worth $100,000 but the mortgage is $110,000 - and you walk away - the lender has the option of foreclosing and coming after you for the difference. It's up to the lender, but if you just walk away without any communication, they will most likely come after you.

If the bank takes the house into inventory (bank owned) it will try to sell it for the best price, fast.

That could mean a sales price of $80,000 (just an example).

At that point, the bank has the option to forgive you the difference of $30,000 and not go after you or your other assets.

However, the IRS will treat that $30,000 forgiven loan as taxable income to you - and yes, the IRS will go after you for it.

I would suggest you talk to your lender about extending the term of your loan to add any missed payments back into the principal or as additional payments at the tail end of your mortgage life - so you can try to keep the house.

If you absolutely can not make the payment anymore, talk to your lender about a short sale - giving you the chance to sell it quick and pay off what you can, so it does not become bank inventory.

With a short sale, ask your lender to forgive the difference after the sale. A short sale on your credit rating is not as devastating as a foreclosure.

However, the IRS will still look at the loan balance forgiven as a taxable item.

For more information, call the Home Ownership Preservation Foundation, a non profit group dedicated to helping people in trouble keep their houses. 888-995-4673

Good luck and best wishes.

Danielle Said:

How do I change home mortgage lenders?

We Answered:

You can only refinance, or you can wait until (and IF) BoA decides to sell the loan to another lender. Don't bother with refinancing. You might find the loan sold back to BoA shortly after closing of the refinance.

Agnes Said:

How can a home mortgage lender verify an applicants provided employer actually exists?

We Answered:

If it smells funny and the banks wont touch it, then you shouldnt either. If you want to verify that his company is legit, then you can check their EIN number (the number that the IRS provides them with) to verify that they exist and are a legal entity.

Jordan Said:

Does anyone know of a home mortgage lender in Australia who offer 35 year terms?

We Answered:

Whether there is or isn't, you do not want to do that! Even 30-year terms make the property very costly - you're paying triple the purchase price due to interest. You cannot survive financially, no less get ahead, by paying so much interest for so long a period of time on borrowed funds.