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Will I still owe money after my house gets foreclosed?

Posted on: 20th Apr, 2009 01:32 am
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.
We owe more than our house is worth. There are foreclosures all around us in our neighborhood. We want out of this mortgage. We have found another home we want to buy. We have thought of renting our current home-any other suggestions on how we can get into the other house--??
Posted on: 04th Sep, 2010 09:05 am
Yes You will still owe the money if you are if you are in a state that allows for deficiency judgments.

[External link deactivated as per forum rules. Thanks.]
Posted on: 05th Sep, 2010 11:12 am
My house was foreclosed. I still reside there and will end up in court for the eviction process. The utility bills now arrive addressed to current resident and there is an amount due. I did not take them out of my name. I assume that the bank did. Who is responsible for these bills?
Posted on: 27th Mar, 2011 10:25 pm
Hi SAC,

The person whose name is mentioned on the utility bills will be responsible for paying off the bills. If the bills are in the name of the new owner of the property, then he/she will be liable for paying it off.

Thanks
Posted on: 27th Mar, 2011 11:19 pm
we are like a lot of people and owe more on our house than we could sell it for. My husband would like to relocate to Portland Oregon where he works, and we currently live in Vancouver Washington.I am having anxiety attacks and am finding it hard to work. Would a deed in lieu work for us, and what would be the first step we would take.
Posted on: 19th Jun, 2011 07:01 pm
hi guest,

you should contact your lender and apply for a deed in lieu of foreclosure. if the lender is convinced about your financial hardship, he will agree to a deed in lieu of foreclosure and you'll be able to get rid of your property.
Posted on: 19th Jun, 2011 10:32 pm
i have an fha loan and will soon be losing my job... what actions should i take with my bank.. so i wont go into foreclosure
Posted on: 08th Aug, 2011 06:50 pm
Hi willy!

Welcome to forums!

You should contact your lender and inform him about your impending financial situation. You can then apply for a loan modification with your lender. If the lender accepts your request, then it will help you in saving your property from foreclosure.

Feel free to ask if you've further queries.

Sussane
Posted on: 08th Aug, 2011 09:51 pm
if i forfit my home,,,,,iv heard the irs can add the amount to our tax? is this true?
Posted on: 10th Nov, 2012 02:56 pm
Hi hay,

The amount that has been forgiven by the lender can be taxable. The IRS can charge taxes on it. But as the Mortgage Debt Relief Act is still in vogue, the IRS may not charge taxes for the deficient balance.
Posted on: 11th Nov, 2012 10:01 pm
I'm going through a foreclosure in Idaho and have a niamiah loan. I went through a divorce and I couldn't afford the home anymore. I also got a job promotion and moved. The loan is through chase bank. Will they come after me at all including my tax return.
Posted on: 12th Nov, 2012 03:35 am
Hi ash,

After foreclosure, the lender has the right to come after you in order to recover the deficient balance. In that case, it can come after your tax return to recover the debts.
Posted on: 13th Nov, 2012 11:14 pm
hi, i am living in our homesteaded house in florida. been year for 4 years because of medical problems. my husband and is currently living in our home in cincinnati ohio. our son graduates from highschool in may. so my husband will be moving down here to be with me then. we've had the house up for sale since 2007 with realtor and by owner. what would be the best thing for us to do with this house in ohio? we have paid the main morgage off already but still owe 90,000 in equity line to the bank. please help.
Posted on: 11th Jan, 2013 08:49 am
Hi babydoll,

If you don't want the property, then you can put it on the MLS listing for sale. Once the property is sold off, you can pay off the equity loan and get rid of it.
Posted on: 14th Jan, 2013 12:02 am
My wife has a house in Tennessee, lost her job and has no income and has to let the house go to a Deed-in-Lieu to the mortgage company....she owned the house many years before we married...my question is can the mortgage company try to make the husband pay the late payments or deficiency judgement...the husband is on retirement income and can not afford to pay....what is the law in Tennesse say about this?
Posted on: 17th Jan, 2013 11:45 am
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