Indy mac says no cash for keys program

[Canyonguy]

I have missed last 2 months live in CA talked to many realtors & Real estate attorneys and hope they are correct that it is a non recourse state and can just walk away- with only my credit being hurt. I wish I could get the statute or some other legal proof that this is correct.I have no equity as I only made my min payments and value is down over 50% from buy in price.I see others here getting 3% loan mods and pricipal reduction but recieved no reaction when I mentioned this to Indy.

[jennordhavn]

I don't believe that CA is a non recourse state. They will be able to come after you for the difference in the loan balance and what they end up selling the house for. CA allows for wage garnishments and bank levies once a judgment is received. Or they may send you a 1099 and you would have to claim the amount as income on your taxes.

[dingdong]

California is a non recourse state if they use Trustee Sale as foreclosure, if a judicial foreclosure, then you can be liable for the deficiency.

[dingdong]

[mesa777]

Right but if you give the home back, walk away, and file for BK they can no longer come after you for the deficiency... correct??

[dingdong]

BK wipes out the deficiency in a judical foreclosure.

[jennordhavn]

Right but if you give the home back, walk away, and file for BK they can no longer come after you for the deficiency... correct??

Yes, that's true. I assumed the OP meant s/he didn't want to file BK and just walk away.

Dingdong is right that if they use trustee's sale then there is no recourse. The OP can also look into loan modification, short sale, etc. I read somewhere Indymac was offering loan mods.

[OhioFiler]

I thought IndyMac was kaput.