Will i have to pay any money if i foreclose on my house?

Alvaro
Transferred to another city, cannot afford house payment, and rent. If I do foreclose on my house will I have to pay any costs. Will the bank try and make me pay the difference if they can't sell the house of what I owe them. Because I refinanced a year ago I would never be able to get the price I pay.

Aubrey
Talk to your bank now. If they foreclose they can sell the house at foreclosure sale and any amount they don't get at the sale will be charged back against you. If you don't pay it then they can write it off and charge it back to you as income and you have to pay income tax on it. Talk to them about doing a Deed in Lieu or if they can place the home with a Realtor and try to sell it. I have been through this and trust me communicating your situation with the bank is the best thing you can do. Good Luck!

Carlee
Different lenders have different policies with regard to foreclosures. I recommend that you talk to your current lender and try to work out a compromise. You can offer to provide them with a deed in lieu of foreclosure that would save them the costs of proceeding with the actual foreclosure process.Depending on the actual market in your area they may find this to their benefit.The bank may issue a 1099 Miscellaneous Income form in your name to the IRS. This would be considered taxable income.The only question is what became of the money you got from the refinance? If it was used to improve the property you may be able to sell it for a break even.

Ginger
No, you would not have to pay any cash out of your pocket. Now you will pay with your credit score. It's similar to having a car repossessed. Your score will bottom out and when ever you decide to buy another home that will show on your credit and it would be next to impossible to get an affordable payment. Now every State is different, and you should talk to a realtor to find out more options. Because sometimes with the market the way it is some banks will lower or drop their Prepayment penalty so you could see your house and the bank gets their money.

Emerson
you should really call the lien holder and discuss your challanges with them... A foreclosure is going to cost you in the long run because your credit will be so poor you won't be able to get good rates on loans.have you considered renting your place after you move out?

Cyndy
your in the ****.thats another reason to join the military. the Military would worry about the housing(wich is free and provided by the goverment.)

Armandina
You need to find a Realtor who can negotiate a "short sale" for you. A short sale is when you sell your home for less than what it owed on it-I am a Realtor who lives in Michigan and work directly with banks like Wells Fargo and Country Wide, I do this all the time. It saves you from having a foreclosure on your credit report. Your Realtor will list the home for market value or less than what is owed and when you get a buyer will negotiate the sale directly with the bank. The process typically takes 2-3months once you get an accepted purchase agreement. Depending on how far behind your are on your loan and what state you are in this may be a great option for you. In Michigan you have a 6 month redemption period after you default (3 months of missed payments). Good luck!