Questions about Forclosure/walk away after capter 7

[walley]

Here is the scenario:

mortgage discharged 2007. NOT reaffirmed. ride thru till now.

Wife and I inherited property. Would like to move into the property.

If we let our current house go, we should not be responsable for deficiancy or pay debt forgiveness taxes, correct?

and will our posostion of debt being disharged give us leverage to get bank to short sale house?

[justbroke]

You would not be responsible to pay anything once you walk. You will, however, be named in the foreclosure lawsuit whenever that happens. You cold negotiate with the bank on a short sale. Typically, though, the banks have required the home to have been listed on the market (MLS) for at least so many days (or months) before they'll consider a short sale.

Best of luck to you. Please let us know how it goes!

[LadyInTheRed]

Keep in mind that if you stop making payments, the house is still yours until the bank forecloses and title is transferred out of your name. You might want to consider renting it out while you wait for foreclosure. Just be upfront with the tenant about the situation so that they know they may be evicted by a new owner after the foreclosure.

[justbroke]

An excellent suggestion LITR! An excellent suggestion! Where were you 5 years ago?