Zander
Platinum Member
Bye the way, the bank refuses to modify the contract.
With that in mind, I favor his walking away. What do you think?
Personally since the bank is being so insensitive I have told him to fuck the bank. He is considering it. Personally, I would throw a brick through the window of the bank but he won't.
Are you advising him to file personal bankruptcy as well? Because that will be the result of walking away.
Maybe not. California and a few other states have 'non-recourse' real estate loans. That means that the property is the only surety that the bank has. The bank cannot go after your other assets in the event you default on the note. There are some vagaries and loopholes of course, but generally speaking if you walk away from a mortgage you do not need to file bankruptcy.