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Unforunately, an option that seems to be used entirely too often, is to do nothing. Do you understand what a foreclosure will do to your credit? Let alone dealing with the constant calls, extra fees and possibly being taxed on the amount that your lender can not recuperate through the foreclosure sale. That is right- most people do not know that the bank can do 1 of 2 things when you lose your house to foreclosure:
1- In the first case they can choose to sue the owner, earning a judgement that you still owe them the amount that was deficient from the sale. This will follow you forever until you can repay the amount.
2- the second case has the bank issuing you a 1099 for the deficiency amount, which means that you would now owe taxes on the deficiency amount- putting you in a very tough situation now with the IRS.
There are ways to avoid these, and again DO NOT TAKE THIS AS LEGAL ADVICE.
If you are unsure what your circumstance may be- you should contact a real estate lawyer.
If you need more information on how we may help you navigate through this process, email or call us now!
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