In micky writes:

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

Depends whether it's a "non recourse" State.

In some areas, the mortgage holder can _only_ go
after the property, which gives the "owner" [a]
the option of calling the bank up and saying
"I'm walking out; the keys are under the mat".

This was a common event in the years following
the "great recession" of a decade ago.

Look up the term "jingle mail".

In a "recourse" State, the lender can go after
other resources but might, or might not.

[a] term used a bit loosely given there's a
mortgage and who actually "owns" the land
is a bit grey, but you know what I mean..



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