Walking away from a mortgage in New Jersey — sometimes called strategic default — is legally possible, but it comes with serious consequences. NJ is a recourse state, meaning your lender can pursue a deficiency judgment for the difference between what you owe and what the home sells for at auction. A better alternative is selling your home, even if you owe more than it's worth. Sargent Homes can help you negotiate with your lender and explore options like short sales that minimize your financial exposure.