Do I forclose?

melaniefitzgibbon · Joined: 01 Apr 2008 Posts: 1 1.38 Dollars($)

So heres my story...
We got our townhome 2 years ago, new. With closing cost included we paid 170000. We now need to move to another state to avoid losing the home left to us(paid off).
Our neighbor is listing his townhome for 119000. We are 2 months late always on payments now and can not continue to pay for it. We can not even rent it for near our payment. What do I do? If I forclose will I be responsible for the difference of what the mortgage company can get from it? I'v also thought of BK? I do not think with fair market value I would qualify for signing it back to the mortgage company?

Did I mention I'm also in Credit Card debt. I have a car loan too, but I really need my car.
Help

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi melaniefitzgibbon,

Welcome to the forum.

I think you should not go for foreclosure. It will not help you in any way. It will have a huge negative effect on your credit report and you will also be responsible for the remaining balance of you due debt after foreclosing the house.

There are so many ways to avoid foreclosure. Check out this article to know different ways to avoid foreclosure. http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Feel free to ask if you have any further questions.

Best of luck,
Larry

sara

Hi,

You may be responsible for the difference depending upon your state laws. If it is an anti-deficiency state, you won't have to pay the deficiency or the difference as you say. But otherwise lenders can demand it.

I guess you can go for Chapter 13 which will be better than foreclosure. It will also not affect your credit as much as foreclosure because you're in fact trying to pay off debts. And you may even include credit card debts, car loan in the bankruptcy.

Did you ask the lender about any workout option? has he already declared foreclosure?

I suggest checking out whether to foreclose or file bankruptcy before you think of filing chapter 13.

Take Care

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