foreclosure

skithuy · Joined: 22 Sep 2008 Posts: 2 1.72 Dollars($)

hi . i want to foreclose my house because i cannot afford it rite now and i owe more than what it is worth. I want to know more about the laws. i live in stockton california. My situation is i use to have an arm loan which i refinanced a year ago to a 30year fixed rate. I also own two other property that have equity in them.
I heard a lot of different situation that might happen if i foreclose my home which i am not sure if its true. One of them is that since i already refinanced the home i cannot foreclose it anymore and if i do they will go after me for the remaining balance instead of forgiving me for it. Is that true? WIll they go after my other two property? Does anyone know really what can happen to me or who i can talk too? i have a bank of america loan and try to talk to them but they were not helpful. Who should i talk to?

Thank you for any help

smithsussane · Posted: Thu Oct 09, 2008 7:44 pm Post subject:

Hi skithuy !

Welcome to Forums!

There are other options like deed in lieu foreclosure and short sale, which, I feel is better than foreclosure. Both of these processes are more or less same. In these processes, you will have to give away the property back to the lender who will give you a note stating that the loan is paid off. The lender will then try to sell the property in the market to recover his money. In most cases, there remains a deficient amount as the lenders are unable to get the due amount. There are chances that you will have to pay this deficient amount to the lender. If you are unable to pay, they may place lien on your other properties.

It will be better if you could speak to the lender and tell him about the whole issue. He may tell you about the loan repayment plans as well.

Feel free to ask if you have further queries.

Sussane

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