We went into foreclosure...?

does anyone know what kind of financial issues we're facing?

The mortgagor (that's you) is required to pay for mortgage insurance, or PMI, for as long as the principal of his primary mortgage is above 80% of the value of his property. In most situations, insurance requirements are sufficient to guarantee that the lender will get all his money back, either from foreclosure auction proceeds or from PMI.

Nevertheless, in an illiquid real estate market or following a significant drop in real estate prices, it may happen that the property being foreclosed is sold for less than the remaining balance on the primary mortgage loan, and there's no insurance to cover the loss. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor. Deficiency judgment is a lien that obligates the mortgagor (again this could be you) to repay the difference. It gives lender a legal right to collect the remainder of debt out of mortgagor's other assets (if any).

There are exceptions to this rule, however. If the mortgage is a non-recourse debt (which is often the case with residential mortgages), lender may not go after borrower's assets to recoup his losses. Lender's ability to pursue deficiency judgment may be restricted by state laws. In California and some other states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans, however, refinanced loans and home equity lines of credit aren't.

If the lender chooses not to pursue deficiency judgmentâ€”or can't because the mortgage is non-recourseâ€”and writes off the loss, the borrower may have to pay income taxes on the unrepaid amount.

Any other loans taken out against the property being foreclosed (second mortgages, HELOCs) are "wiped out" by foreclosure (in the sense that they are no longer attached to the property), but borrower is still obligated to pay them off if they are not paid out of foreclosure auction's proceeds.

A lot of debt, bad credit, and stress. Most of these things that home buyers should look into BEFORE they go buying a house and borrowing a load of money.

mess up credit for about 10 years.

you will lose your home and everything in it when the bank forcloses on your house =/ sorry

Many people are having the same issue is you. It's a big problem right now, so don't get down about it. Do all you can to make things work for you. Read and study all you can about finances and budgetting. Good Luck!

You defaulted on the terms of your mortgage or house loan. That said, your credit rating is in the toilet and at the very least your house will be taken away. Sorry.

Sorry to hear that, but you probably wont be able to buy again until after 7 years. I think its just like bankruptcy, it will ruin your credit for awhile.. God be with you and your family in the coming years

You mite loose your home...!

i do im going through it too we have to move so yeah

Choosing foreclosure can be tough, as it has sever and long-term effects. You not only stand to lose your home and look for alternative accommodation, but your credit rating will be affected for next 7-10 years. Within 10 years, your life can undergo many changes and your purchasing capacity may be restricted, even though your spending habits have changed. Foreclosure is a major choice and it is best to take it with the help of a credit or debt counselor. http://www.freewebs.com/getanswer/foreclosuredecision.html

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