What are the basics that I should know before choosing to foreclosure move?

Question

Our children have three conds that are worth less than the loan advance.They are struggling to pay the interest rates.We are ignorant of the potential costs and benefits of the foreclosure move.

Answer 1

Contact the National Foundation for Credit Counseling at www.nfcc.org or call them at 1-800-388-2227.  They have a homeowner crisis resource center that will answer your questions in an unbiased manner for free.

Answer 2

Instead of foreclosure in which the bank basically takes the home and sells it for what they can get, try and see if the bank will simply take the deed back in lieu of a foreclosure. Then they cannot come after you for any shortage in them selling the house. If you owe 100,000 and the house sells for 80,000, they can come after you for the balance in a regular foreclosure. If they take the deed instead, you are free and clear. also try selling it and see if the bank will do a short sale which means they will take whatever you get as a result of the sale and you won't owe the balance.

Forclosure is ther worst because you get nothing and lose everything.