I live in AZ and I need to let my house go. Can the mortgage company come after more in foreclosure?

Question

We need to let our house go because we cannot afford it any longer. We live in AZ, can the morgage co. come after us for more money? Should we file bankruptcy instead?

Answer 1

You need a pro to consult with on this. To many variables to go into on this site. The mortgage company may be the least of your problems. The IRS has some strange ideas on foreclosures these days. If you have been dealing with a bank for several years, Go down and ask the manager for info. She might know all the answers but if she doesn't she will know who does. Good luck

Answer 2

According to most mortgage companies, if you foreclose and the house does not sell for what you owe the company, you may be responsible for the rest of the monies owed. they can and often times will come after you in the form of a law suit.

Now, if you can prove that the house has lost value in the economy of your neighborhood, (have a Realtor do a free CMA, or buy an appraisal of your home) then and only then can you negotiate a short sale. A short sale is when the bank accepts the fact in writing, that the home will no longer bear the amount owed in a regular home sale.

Hurry up and get your house on the market with a Realtor. This will delay the procedure of foreclosure if you get the Realtor to fax over evidence that you are trying to sell the home to repay any monies owed to mortgage company. Whatever you do, do not procrastinate!!!! Move now! this will ruin your credit for seven to ten years if you do not get the house sold to satisfy the mortgage company.

Sorry for you dilemma. I hope this information helps. Have a blessed and peaceful day.

Vincent

Answer 3

in general some banks will right off the debt and others will try and collect especially if you have other assets to attach to, but it is not a hard and fast rule that the bank will automatically write off the debt