what happens to people who walk away from their homes?
I'm not very familiar with the foreclosure process but I am curious what happens because my fiance's parents just walked away from their home last summer. They owned it for about twelve years but had refinanced and used the money to pay bills or buy crap I guess. They still owed more than they could probably sell the house for although the house was on 8 acres but mostly hillside and woods. Anyway, I was under the impression the bank had already foreclosed and that is why they moved. I just found out that they were behind on their payments but at the time they moved, the bank had not foreclosed. They moved in July of last year and just yesterday were served with what they say is the bank suing them for the balance they owe.
I'm amazed that people just walk out of their home and expect nothing to happen to them. They didn't damage the house or anything, just left a bunch of junk they didn't want and locked the doors and left. I'm sure the house has probably been vandalized by now by kids or people trying to break in. They never tried to sell the house at all. They just decided they couldn't make the payments and left. Their only concern was putting "no trespessing signs" on the property so they wouldn't be liable if anyone got hurt.
His parents are saying they are probably going to jail, etc. All I know about foreclosures is that the house will probably go to a sheriff sale and if the bank sells it for less than they owe and forgives the remaining amount they will have to pay taxes on that amount.I don't condone this behavior at all, I didn't know about it until yesterday (I thought the bank had already ordered them to move out) What normally happens to people who walk away before their home goes into foreclosure?