House in Foreclosure - Forced into 13

[jeanne]

Our house is in forclosure. We need to file Chapter 13 because of income.

We do not want to keep our house (moving for new job opportunity). Can we just "walk away" from house?

[lrprn]

Our house is in forclosure. We need to file Chapter 13 because of income. We do not want to keep our house (moving for new job opportunity). Can we just "walk away" from house?

Yes, you can always walk away from any loan. However, having a good idea about what the possible outcomes will be for you if you do is probably what you are really asking.

Just a couple of questions so we can try to answer your question better.... How many mortgages do you have on the house? Is what you owe on the house what the house is actually worth? How much equity (if any) do you have in the house? Did you try a short sale before the house went into foreclosure? What other secured assets and non-secured debt do you have? Any kids? What does your family income add up to over the last six months? What state do you live in and how long have you lived there?

Glad you found us - we're here to help if we can!

[jeanne]

House in Foreclosure - Forced into 13

Husband's business failed. That is why we ended up in this mess.

1st mortgage: $185,000
2nd mortgage-business loan using house as collateral: $120,000

House is worth $250,000

Truck - owe $15,000, worth $10,000

Business equipment worth about $20,000

Property taxes - owe $13,000

Credit Cards: $30,000

Parents PLUS loan - $30,000

Medical bills: $4600

Payroll taxes from business (business was an LLC): $50,000 with all the penalties and interest and businesses' matching amount

I make $42,000. Husband showed only about $3000 of income until four months ago when he got an outside job and now makes $38,000.

One child - Wisconsin (all our lives).

Husband just got offer for $50,000 job and wants to take it. We would have to move, and that is why we would walk away. I should have no problem getting new job - probably better than what I have.

Whew---that's it.

Thanks for your help.

[SamanthaJones]

Loans over $300,000 on a $250,000 property.

Why do lenders continue to allow folks to get into these situations? Did the business loan originator require verification of the value of the property?