2. You could be held liable for the short fall if the lender does not recover all they are owed. Not likely in many cases and it depends of a number of things. One is what process the lender takes for the foreclosure. Another is if you lied on the original loan application. Most people just lose their home and that is the end to what they owe.
3. You credit will be seriously trashed. You will have problems trying to rent. Hence if you think you are heading into foreclosure consider all offers that solve the problem early. Also consider moving to a rental place before the credit file shows all the damage and before the foreclosure happens.
Many people heading toward foreclosure are in denial. They somehow expect things to be turned around. If there is equity be willing to give it up (partially or completely) to get a clean exit. If there is no equity contact the lender(s) as they will sometimes work with you rather then go the full legal process to foreclose. By work with you I mean reduce what they are owed to help get the place sold. You still have to move. They might restructure the payments if the problem was temporary.
It might not be a bad idea to look for investors in your county to see if one of them would be interested in helping with your situation
You might even learn something from the whole process...
It depends of the state law. In some, the value of the land is all they can go after.
Why let the house go to forclosure if you see posts on here as to how it can be avoided?
You also have to be aware of the debt forgiveness which could be come a tax issue.
1. You lose the house.
2. You could be held liable for the short fall if the lender does not recover all they are owed. Not likely in many cases and it depends of a number of things. One is what process the lender takes for the foreclosure. Another is if you lied on the original loan application. Most people just lose their home and that is the end to what they owe.
3. You credit will be seriously trashed. You will have problems trying to rent. Hence if you think you are heading into foreclosure consider all offers that solve the problem early. Also consider moving to a rental place before the credit file shows all the damage and before the foreclosure happens.
Many people heading toward foreclosure are in denial. They somehow expect things to be turned around. If there is equity be willing to give it up (partially or completely) to get a clean exit. If there is no equity contact the lender(s) as they will sometimes work with you rather then go the full legal process to foreclose. By work with you I mean reduce what they are owed to help get the place sold. You still have to move. They might restructure the payments if the problem was temporary.
Questions?
John
[addsig]
It might not be a bad idea to look for investors in your county to see if one of them would be interested in helping with your situation
You might even learn something from the whole process...