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I am recently divorced, and am leaning toward foreclosure. What are the ramifications?

Posted on: 05th Apr, 2009 05:24 pm
Owe $244,000. Estimating value to be worth around $210,000.
NUMEROUS other bills including a large loan.
Monthly take home $3400
Mortgage pmt $2100
Loan $732
Car $420 (final pmt due in Nov this year)
(Notice there are no utilities included yet!) HELP!!!!
hi karen,

if the current market value is $210,000 and the amount you owe is $244,000, there will be deficiency of $34,000 from the auction of the house. you will be required to pay off that amount. if you do not pay it off, the lender can obtain judgment against you. if you have a second mortgage on the property, that needs to be paid after satisfying the first mortgage balance. the second mortgage holder can also get a judgment against you and can garnish your wages. you can go for a deed in lieu wherein you would be forgiven the deficient amount by the first mortgage holder. however, the second mortgage holder can still come after you for the due second mortgage balance.
Posted on: 06th Apr, 2009 12:45 am
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