Lenders starting to run after 'walkaway' homeowners

Banks chasing walkaway defaulters
Banks chasing walkaway defaulters

It's a variation of "you can run, but you can't hide," in the case of underwater homeowners (those whose homes are now worth less than the remaining mortgage). In increasing numbers, according to reports, people are simply walking away from their homes. Now banks and other lending institutions are starting to run after them.

According to theDetroit Free Press, more and more lenders are either hiring collection agencies or "getting deficiency judgments -- court orders that allow banks to collect on mortgage balances."

And that is bad news for the walkaway ex-homeowner. Such a court order would allow the bank to do everything from garnishing wages to grabbing any tax refund he might be expecting.