Loans
Mortgages
Foreclosure
Money Management

If you are paying interest only on a mortgage and have no equity in a home that has depreciated can you abandon the property?

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Answer

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Wiki User
01/18/2007

Sure, if you don't mind losing your entire investment, ruining your credit rating and being hassled by creditors. Ok... enough sarcasm... maybe you need to talk to Suzie Orman. Yes, but the borrower will still be responsible for any deficiency between the loan balance and the amount that the lender receives in the sale of the property. In addition to any deficiency that may result, the borrower is also responsible for all other costs incurred by the lender related to the foreclosure process.