Foreclosure: Walking away from my house?

This is the last thing I want to do, but I’m afraid I’m out of options. I live paycheck to paycheck and have enough debt to dip into credit cards monthly to pay utilities. My wife just lost her job and there’s no way we can pay our credit card bills and mortgage. We bought our home in Colorado in 2001 and we’re now nearly 0K upside down with our 1st and 2nd together making it impossible to refinance. If we walk away, I know her mom will let us stay at her house until we’re back on our feet. I understand many of you will judge me for bad decisions, but I’m really looking for constructive responses. Here are my questions.

1. Can the lender come after my assets or garnish my wages?

2. What happens to the 1st and 2nd mortgages?

3. The other drastic option would be a credit card relief company. Is this worse than walking away from my house?

Thanks in advance.

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Mon, Dec 28, 2009

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2nd mortgages, Assets, Bad Decisions, constructive responses, Credit Card Bills, Credit Cards, Job, Mom, Mortgage, Paycheck To Paycheck, Thanks In Advance, Wages

Tags: 2nd mortgages, Assets, Bad Decisions, constructive responses, Credit Card Bills, Credit Cards, Job, Mom, Mortgage, Paycheck To Paycheck, Thanks In Advance, Wages

3 Responses to “Foreclosure: Walking away from my house?”

Baby boy due March 7, 2010 Says:
December 28th, 2009 at 8:36 am

If the house is worth less than you owe then yes they can come after you for the remaining amount. I would look into a consumer credit company before walking away from your house as long as you can still pay your mortgages. Also you have to think about how long you will be staying at your moms if you walk away. You won’t be able to buy another house and some apartments might not take you either. Or you could lastly talk to an attorney and see about filing bankruptcy.

MVD34 Says:
December 28th, 2009 at 8:36 am

1. Yes…but these days what matters is now much relief is really available to the lender. They are unlikely to bother is nothing substantial is available.

2. Talk to a lawyer about bankruptcy and a realtor about a short sale. If you are going to do it, you should explore all of your options and handle it in a coordinated, forthright way. The 2nd mortgage (without a short sale) will become a collectible against you. The 1st will take the house and sell it. In some cases the balance due becomes a collectible against you (without a short sale agreement).

3. No such thing. Try nonprofit credit counseling. To find a legitimate counselor, contact the National Foundation for Credit Counseling at NFCC.org or call 1-800-388-2227

Fiona B Says:
December 28th, 2009 at 8:36 am

Please visit http://www.naca.com
They help homeowners who can no longer afford their mortgage. All the best to you.

Baby boy due March 7, 2010 Says:
December 28th, 2009 at 8:36 am
If the house is worth less than you owe then yes they can come after you for the remaining amount. I would look into a consumer credit company before walking away from your house as long as you can still pay your mortgages. Also you have to think about how long you will be staying at your moms if you walk away. You won’t be able to buy another house and some apartments might not take you either. Or you could lastly talk to an attorney and see about filing bankruptcy.
MVD34 Says:
December 28th, 2009 at 8:36 am
1. Yes…but these days what matters is now much relief is really available to the lender. They are unlikely to bother is nothing substantial is available.

2. Talk to a lawyer about bankruptcy and a realtor about a short sale. If you are going to do it, you should explore all of your options and handle it in a coordinated, forthright way. The 2nd mortgage (without a short sale) will become a collectible against you. The 1st will take the house and sell it. In some cases the balance due becomes a collectible against you (without a short sale agreement).

3. No such thing. Try nonprofit credit counseling. To find a legitimate counselor, contact the National Foundation for Credit Counseling at NFCC.org or call 1-800-388-2227
Fiona B Says:
December 28th, 2009 at 8:36 am
Please visit http://www.naca.com
They help homeowners who can no longer afford their mortgage. All the best to you.