Here is an interesting web site that outlines relevant Washington state laws that protect debtors.
Unfortunately, it looks as if Washington state doesn't offer as much statute protection from creditors if you walk away from a house as other states. There is a $40,000 homestead exemption, and life-insurance is safe, but that's about it.
Nevertheless, people with homes that are worth less than the mortgage still might be able to walk away relatively unscathed if their particular lending agreements limit the lender's ability to pursue assets other than the house. It is certainly worth talking with a lawyer to see if one can avail themselves of the opportunity to just give the keys back to the bank (which is by far the preferred strategy if your home is "under-water").
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should everyone with negative equity just 'walk away'
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Re: bailout to prevent walking
by redmondjp » Fri Aug 31, 2007 9:48 pm
Fighting off Affluenza on the Eastside since 1995
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Re: bailout to prevent walking
by perplexd » Fri Aug 31, 2007 10:58 pm
“Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” - Daniel Webster
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by laxtosnoco » Thu Oct 18, 2007 9:22 pm
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