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Will I still owe money after my house gets foreclosed?

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.

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Realgeni's picture
Realgeni | Joined: April 13, 2009 08:03 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Realgeni's picture
Realgeni | Joined: April 13, 2009 08:03 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Marina,

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

Good luck and feel free to ask

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devidas_padir's picture
devidas_padir | Joined: March 1, 2009 12:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Realgeni's picture
Realgeni | Joined: April 13, 2009 08:03 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sure

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url].

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

God I am in the same boat...... what are you going to do?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

Can you explain your situation in details? It will help me and other members to help you in a better way.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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--??

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dresilicon's picture
dresilicon | Joined: September 5, 2010 11:10 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes You will still owe the money if you are if you are in a state that allows for deficiency judgments.

[size=9:8f241a2f74][color=Red:8f241a2f74][External link deactivated as per forum rules. Thanks.][/color:8f241a2f74][/size:8f241a2f74]

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You should contact your lender and apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. 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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if i forfit my home,,,,,iv heard the irs can add the amount to our tax? is this true?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Ralph,

As far as I know Tennessee is not a community property state but it allows community property trusts and property placed in that trust will be considered as a community property. After reading your query, I don't think the house is a part of community property trust, if any. In such a case, the husband won't be liable for paying the deficiency judgment for the wife.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Adonis, thanks for your reply....why would the mortgage company then ask for our bank statements since I have nothing to do with my wife's mortgage before marriage? My bank pays our bills and my only income is a pension...my wife has no income....I know that a pension is protected, but why do they want the bank statements?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

HI Ralph,

This is something which the lender will be able to clarify. You should get in touch with the lender and check out why he needs your bank statements.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Babydoll here again,

our house has still not sold in Ohio. my husband is ready to move to be with me and will be taking a major pay cut. there is no way that we can keep paying on the equity line loan of this house and also be able to pay our monthly bills down here. we have dropped the price down to what we owe on it and still no buyer. can we do a Deed in lieu of foreclosure? to get out of this house?????

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Babydoll!

Welcome to the forums!

You can definitely apply for a deed in lieu of foreclosure with your lender. However, you should remember that a deed in lieu of foreclosure will have a negative impact on your credit and will lower your scores by 250 points.

Feel free to ask if you've further queries.

Sussane

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