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| CRE Online > Real Estate Law > Bill Bronchick > Question and Answer |
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Question:
We recently learned of a friend who intends to abandon their home. We don't really believe that they will do it, but we would like to be able to show them what they will face in the event that they do go through with it. They purchased a home in a bad school district in PA before they had children. Now, 9 years later, they are faced with the prospect of sending their children to this bad school district. The home is very nice inside, but it's in one of those areas where property values are on the decline. They are not the type who will research the consequences - just as they didn't research the school district. They would rather make a hasty decision, then complain that they had no choice and that the system isn't fair. Could you provide some background on what could happen to them? If not, could you recommend how I could find that info? Answer By William Bronchick: If they don't pay their mortgage, the lender will commence foreclosure proceedings to gain ownership of the property. In PA, a lender can obtain a deficiency judgment against a borrower. This means that if the amount of proceeds from the foreclosure are not enough to pay what is owed, they are personally liable for the difference. It goes without saying that their credit will be adversely affected. Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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