Post # 1
Regular poster going anon for this quite embarrassing question. DH and I are having some financial issues & we’re getting ready to lose our house. It’s a very long story. But, we’re doing our best to prepare & start rebuilding. We both have decent jobs, but have been hit hard with unexpected circumstances.
We’re both on our 2nd marriage, and we both were forced into bankruptcy as a result of our divorces, over 6-7 years ago. After mine, I rebuilt & bought my house on my own with my child, then met DH a year later. We’ve now been married for almost 4 yrs, and in the last two we’ve had huge medical expenses, legal expenses involved with a child custody battle, and a job loss. Bottom line, we can’t afford this house, the mortgage is at least $15k upside down, and the mortgage company won’t work with us on a modification or short sale because they say we make too much combined, although the house is solely in my name.
So, we’ve located a place to rent to save us about $600 a month. The lease is signed & we move in on June 1st. But, I’m so worried about what will happen as the foreclosure moves forward. Obviously, they’ll sell the house at auction. But, what happens then? What happens to he taxes on the house? Do they then come after me? How long will this take to clear up? From what I read, if we work hard to rebuild, it’s possible to purchase again in 3-4 years. I’m not sure we’ll be ready to that quickly, but I’m in my mid-30’s and don’t want to be a dead-end renter forever.
I’m also so embarrassed when people ask me what we’re doing with my house when we say we’re moving. Our kids are too young to understand what’s going on, so we’re trying to play it up that it’s a good move, and make it as easy as possible. My family has no clue. Only DH’s mom & step-dad know, and they’re doing everything they can to help us out & be supportive.
I really just want to cry about this every day. 🙁
Post # 2
UnkAndWorried: I’m so sorry you’re going through this! Foreclosure is scary and I know it seems so definitive.
However, financial hardships are just a fact of life and your bank account and/or credit scores do NOT define you. Your decisions and who you are do. You have a daughter, you rebuilt yourself up from a hard divorce, you found someone else who was worth it and who you’ve gone through terrible times with and they WiLL make you stronger. There is no shame in any of this.
i read your post and thought of the phoenix and how it must die and burn to ashes before it can live again… If you let it, this experience can be a rebirth for you and your family. ((Hugs))
Post # 3
UnkAndWorried: It depends on your state. In some states, after the foreclosure / short sale they can come after you for the difference between the sale price and what you owe for the loan, and in others they can’t. 3-4 years as a rebound time is definitely not realistic – it will be at least 7-10.
Post # 4
Post # 5
I work in foreclosure for a large mortgage servicer. I know all the ins and outs of the process and it really depends on state, since some have to go through the courts and others don’t and there’s a lot of loopholes. The taxes on the home if you stop paying them will be paid by the servicer (whoever you pay your payments to, this can be different than the lender), as will the hazard insurance. If the property is vacant, the servicer will also perform property maintenance, such as securing the property, lawn care, etc – depending. They will be doing property inspections once a month…. all of these things are charges to your account, which state depending might become apart of a judgment against you. This also depends on who’s handling the foreclosure. The timelines of this really, really depend on state- so if you’re comfortable, I can give you more insight if you private message me with more questions and your state. I’m surprised they won’t consider you for a short sale- this isn’t usually fully dependent on the income, but more so equity in the property. They will consider him if you did list him as a contributor to the house hold bills on your paperwork.