Sorry about your troubles. It can take some time for the bank to foreclose, but the amount of time will vary state by state and by lender. I would recommend that you contact your lender and ask them if they can help you. They may be able to modify your loan if you can show that you are having a hardship. If that doesn't work, I would seriously consider a short sale over doing nothing and letting the bank foreclose. A local distressed property expert real estate agent can help you list your home as a short sale. Check out this website for more information and other resources that may be available to you:
This legislation is so new that I don't think anyone here has seen much more on it than you have. We are also not tax advisers and your question is very specific. I think you are going to have to get advice from a tax adviser, since I would hate to have you make such a big purchase and have incorrect information.
On the one hand, you don't have to be on the title, you could be just on the mortgage. But I am not sure how they will treat you as being unmarried when you bought it but married when you file your taxes. If you waited to get married until after Jan 1, maybe there would be no issue. But I am not a tax expert and I really have no idea how it will be handled.
Very interesting scenario though! People will definitely be looking for creative ways to access this money.... more
Find a local short sale expert and begin working on the bank to let you out of the property. Do a search for "short sale" on trulia and you will find plenty of information about the topic.
It is key that you want a short sale without recourse. In some states the bank can come back after you for the deficit even if they agree to let you sell short. This is definitely something that you will need to get in writing before the sell.
Cameron Piper... more