Mortgage Foreclosures: People Turning in the Keys.

There was another article on the mortgage mess in the Orlando Sentinel this week. Link: They're just walking away from homes -- OrlandoSentinel.com. The article explained that many people are walking away from mortgages on houses with no equity. The article said nothing about deficiency judgments. I believe that lenders do not want to state their liberal policy about deficiency judgments for publication in the news media, and that reporters are intentionally not addressing the issue. Nobody wants to report that mortgage lenders are not currently prosecuting deficiency claims. Any report to that effect would open foreclosure floodgates. The fear of deficiency liablity is one of the primary reasons people try as long as they can to avoid foreclosure. I recommend that people do not deplete their retirement accounts and savings to avoid deficiency judgments. Deficiency liability is unlikely, but the need for retirement security is certain and crucial to financial recovery.