What will happen to the mortgage and home equity loans if the mortgagee left the country for good?

I have a friend who is very desperate because of all the debts, shortsale/foreclosure of his house, mounting credit card bills, etc, want to just leave the country for good to start anew. What would be the possible consequences of this? Will it clear all his debts, if he comes back to the US after 3 years would he be in trouble?What will happen to the mortgage and home equity loans if the mortgagee left the country for good?
Why would a person go through moving out of the country to solve debt problems?





If a person can not make the monthly mortgage this person should contact the lender to find out if there are programs that will allow this person to remain in the house with a reduced monthly payment.





If the lender and the person in the house can't work out a solution the house simply goes into bankruptcy. The bank will eventually get the house after a failed foreclosure sale. In the event someone purchase the property at the foreclosure sale the bank would have gotten enough money to cover the mortgage,plus foreclosure fees.





There are other things that might be done with the lender such as a





#1deed in lieu of foreclosure





#2 possible short sale





#3 selling the property by the borrower(Contact a real estate agent)





Credit card debts can be dispensed with by calling the credit card company, tell them you will no longer be using the credit card and will be returning them (CUT UP) and would like to make a monthly payment on the credit card. Make sure your friend give the credit card company an amount they feel comfortable making.





Failure to come to a conclusion with the mortgage lender and your credit cards, you may get credit counseling from a credit counselor that might be of some service to you or you may file bankruptcy as a last resort.





Leaving the country will not solve the problem at all, so this is not a solution what so ever. If and when this person return the credit card companies will contact him with credit card charge offs.





I hope this has been of some use to you, good luck.





';FIGHT ON';What will happen to the mortgage and home equity loans if the mortgagee left the country for good?
No it will not clear all his debts. If he is leaving the country to start anew, why would he want to come back in 3 years?





He could leave and let his house go into foreclosure, but any other credit card debts, car loans, etc would still be there.





If he wants to leave the country and start anew, maybe he should stay over there for more than 3 years??? :)





Has he tried bankruptcy or tried to repay or remortgage the house at least?
Clarify for us





Is it he, she or you? First you say leave for good but what if ';he'; comes back?





No it doesn't clear your debts and if you come back in 3 years the creditors will be all over you. You ruin your credit etc.





So why don't YOU go see a bankruptcy atty today and stop with the leave the country crap.
Why did you change your question after someone called you on all the discrepancies in it?





No it will not clear the debts but is he going to go for good or 3 years?
Yes, he'll be in trouble. Leaving for three years does not wipe the slate clean. He needs to face his problems and deal with them instead of trying to run away from them.
No and yes.
If you friend absolutely cannot pay the mortgage, the first best move would be for your friend to sell the house. Out of the proceeds of the sale you friend would pay off the mortgage, and if lucky have some money to pay of the other debts. Then your friend starts off clean with no (or less) negative marks on his/her credit report. If that just is not possible, then I would approach the bank and make a ';deed in lieu'; offer. This means that your friend would agree to deed the house to the bank with no court action, and simply move out in exchange for the bank agreeing to declare the loan fully satisfied. If the bank will not do this, then your friends' only option is to quit paying on the house and let it go to foreclosure. If I were your friend, I would not move out of the house. Just live there until he/she is forced to move after the sheriff sale. The Bank will take months to even decide to foreclose (I have seen them sit on a house for over a year with no payment before they even start foreclosure proceedings). The after the foreclosure proceeding is started, it will take almost a year before a sheriff sale date is obtained. I would suggest being out at about the time of the sheriff sale of the property. with this option your friend will have a foreclosure on his/her credit record which will make it very tough to get a mortgage loan later, and the bank could seek a ';deficiency judgement'; (a civil judgement for the difference between the amount they get for the house at a sheriff sale and what was owed on the house) but if that is his/her only option, so be it. As far as credit card debt (and any deficiency judgement), I would recomend seeing a ';consumer credit counseling service';. They are generally a free service. If that is not an option, the a bankruptcy attorney may be the only other option.