Will I still owe money after my house gets foreclosed?

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Eli

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Post Posted: Mon Apr 20, 2009 1:32 am    Post subject: Will I still owe money after my house gets foreclosed?
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I have a house in Washington State, back in 2007 I got a job in Houston
and put our house for sale, our realtor suggested we put it for rent instead so we make more on equity, my wife agreed, our realtor rented this out to this lady, to make this story short she end up not paying rent for 6 months while we were paying $1500 on mortgage and utilities a month, our realtor said there is nothing he can do, I end up payingg $1000 to a lawyer to have her evicted, our house was a mess, it was worth $230,000 at that time it was rented, we still owe the house $176,000. We do not live on the house anymore since June 2007 as we have rented a apartment in Hosuton were I have my job, it has been on the market since July 07, I'm still paying $1300 on mortgage, my earnings is barely enough to pay my mortgage, my rent for the apartment, my bills and food, I'm losing $1300 a month.
My question is, if I put my house to foreclosure, would I still owe the bank after my house is foreclosed?
I know my credit will go down the toilet, but I cannot afford paying $1300 a month for a house I have not been living since July 2007 and I have other bills and debts I have to pay as well.
My new realtor said the house is now only worth $150,000 in todays market and it has been on the list since July 2007.

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Eli

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Post Posted: Mon Apr 20, 2009 1:37 am    Post subject: Will I still owe money after my house gets foreclosed?
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By the way, I have been trying to sell it for $186,000 just enough to make even on what I owe or even if I still lose around $10,000 after the commision and closing cost but still it's not selling.
shugamamma

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Post Posted: Wed Jun 10, 2009 8:49 pm    Post subject: foreclosure
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I owe 210 thousand on my mortgage, if I let them foreclose on it will I still owe the government for taxes?
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Post Posted: Thu Jun 11, 2009 10:02 pm    Post subject:
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shugamamma

Welcoem to the forum

In any situaiton someone needs to pay taxes to the goverment and they do not care who pays

But having said that once the bank forclsoes the property and sells it they need to pay any taxes if any pending

Good luck and feel free to ask
Icon Mini Profile jerry
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Post Posted: Fri Jun 12, 2009 5:35 am    Post subject:
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Hi Eli,

In this situation, I think a deed in lieu is your best possible option. The house is listed since 2007 without any success and cannot be short sold. A regular foreclosure would damage your credit to a great extent. You are likely to be held responsible for the deficiency as well. A deed in lieu will be better option as you can get rid of the house by signing over the title to the lender. The deficiency is also likely to be forgiven in case of a deed in lieu.

Hi shugamamma,

If the lender forecloses on your property, they will sell it off to recoup the outstanding loan balance. Now, if the sale price is not enough to satisfy the loan amount, there will be a deficiency. If this deficient amount is forgiven, you will be required to pay a certian amount of tax on it as the IRS considers this forgiven debt as your income. However, there are certain exemptions available as per the Mortgage Forgiveness Debt Relief Act.

Thanks,

Jerry
marina

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Post Posted: Sat Aug 22, 2009 11:29 am    Post subject:
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If I'm given my house back to the bank, well I still have to pay anything back or will it be over
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Post Posted: Sun Aug 23, 2009 6:54 pm    Post subject:
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Marina,

If you do Deed in Lieu, you are not laible to pay anythign to thebank

Good luck and feel free to ask
Icon Mini Profile devidas_padir





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Post Posted: Mon Aug 24, 2009 5:28 am    Post subject:
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Eli,
You will still owe and you will be sued for any deficient amount. Moreover, you will be troubled with many consequences like no loan for 7 years, dropped credit score etc.. whereas in deed in lieu, this period will be 3-4 years with so many advantages.
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Post Posted: Mon Aug 24, 2009 7:53 pm    Post subject:
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Sure
Patti

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Post Posted: Wed Sep 30, 2009 11:12 am    Post subject: Forclosure/short sale/ deed in lieu
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Hi
My husband and I have been having a really rough year. He was working for one company who didn't have enough business to keep him busy, in that period of time we fell behind on our mortgage. He then found another job and we set up a repayment plan with the mtg co. However at the beginning of this month he was severely injured and is now unable to work for an undetermined period of time. His workman's comp. is considerably less than what he was making per month. We contacted the mtg co again and they had us fill out some forms. However we learned today that it will be 30-45 days before the information is even sent to the review board. In the meantime we are unable to meet the obligations of the repayment program. We are certain they will decide to foreclose but is there any way to get them to review the information sooner and hopefully short sale the house or do a deed in lieu? If we wait until it is reviewed we feel they will just foreclose because we will be farther behind
Icon Mini Profile jenkin7





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Post Posted: Mon Oct 05, 2009 12:32 am    Post subject:
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Hi Patti,

It looks like the mortgage company is reviewing your financial situation in order to check if you qualify for a loan modification. There is little you can do to make them review your information sooner. There are many borrowers in your situation and many have applied for modification. Thus, it is quite likely that your lender will take some time to review your particular case. In case you think a short sale or a deed in lieu will be better options for you, you can write a hardship letter to your lender and request them to approve a short sale or a deed in lieu of foreclosure.
bestfr1303

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Post Posted: Sun Jan 24, 2010 12:25 pm    Post subject:
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If you have a FHA loan and were paying PMI and you house is foreclosed on then it will go back to FHA and your mortgage insurance should pay the different.
skinz1016

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Post Posted: Sat Mar 27, 2010 3:22 pm    Post subject: Help
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I have not been impacted financially but feel like my mortgage payment is too high. If I were to let my home go into foreclosure, what will happen to me? Will the lender try to come get their money? I want to get a house in my wife's name and don't care about my credit anymore, I just don't want the mortgage company to come after me for the remaining balance of my original mortgage.
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Post Posted: Mon Mar 29, 2010 2:59 am    Post subject:
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Hi skinz,

Your query has been discussed on the following page:
http://www.mortgagefit.com/foreclosure/payment-refinance.html#157352

However, in case you have any further queries, feel free to ask the community.
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Post Posted: Thu Jun 03, 2010 6:26 pm    Post subject:
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God I am in the same boat...... what are you going to do?
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