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Voluntarily foreclose

Posted on: 25th Nov, 2012 11:53 pm
My husband bought a house, prior to getting married, with a first time home buying loan. We have since had the house for sale a couple years. We finally got a short sale offer and the bank denied the offer. We also have another house. If we stop making payments and end up having to foreclose on the property, are we liable for the taxes and insurance while we are not making payments? Can the bank 1099 us for the difference after the house sells. What happens if we voluntarily foreclose? Should we hire a lawyer or an accountant?
Unless the property is fully sold off and you are relieved from the liability toward the property, you will be liable for paying the taxes and the insurance payments. You can let the property go into voluntary foreclosure provided if you're facing immense financial crisis.
Posted on: 26th Nov, 2012 01:41 am
Hi Costa!

Welcome to forums!

Yes, you will be liable for the property taxes and insurance payments unless the property is sold off in the short sale. You don't have to hire an attorney in order to get a voluntary foreclosure.

Feel free to ask if you've further queries.

Sussane
Posted on: 26th Nov, 2012 07:11 pm
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