what will happen if my house gets foreclosed on and it is le

0.10 Dollars($)

what will happen if my house gets foreclosed on and it is less than i owe. we have moved out of our house because the payments kept getting higher and higher until we started having serious problems making them. we were late every month and accumulating late fees. when i talked to the bank they said that i just couldn't hand them the keys or surrender it to them. now they are saying that they could report us to the irs and have problems with future returns. what should i do? we are three months behind in payments for a total of over 4,000.00 can they do this. We have since been able to find a house that is rent to own.

Niicss · Posted: Tue Jul 15, 2008 12:28 am Post subject:

Welcome Guest.

This is not only your problem. Thousands of people are facing the same problem. Try and avoid foreclosure. There options through which you can avoid foreclosure. Check it out at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

IF the bank is saying that they are going to report IRS, so have they accepted the deed in lieu of foreclosure? If they accepted then DIL then the deficiency amount will be forgiven and it will be reported in IRS as your income. But now you need not to pay tax on it because of the Mortgage Debt Forgiveness Act

Let me know if you have any further queries.

Guest 0.10 Dollars($)

Hello.

Foreclosure will drop your credit to a great extent. You cannot get any loan in may be in coming 2 or 3 years. your credit score will be dropped 200 to 250 pionts. So try to avoid foreclosure as Niicss said.

evolovik26 · Posted: Mon Jul 21, 2008 9:59 pm Post subject:

If you owe less then your house is worth try selling it b4 foreclosure kicks in. Its better then getting stuck with foreclosure on your record. Short sale might also be an option.

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