If you believe your home is going into foreclosure, you should speak with your bank immediately. You might be able to work out a refinance or loan modification. If not, see if you qualify for a short sale. In this scenario, the bank covers all outstanding fees, including Realtor commissions and attorney fees. And, if you are eligible, the HAFA program even pays your moving fees!
I just had a conversation with someone after foreclosure... Havoc wrecking problems...
Short sale if you can or deed in lieu. Negotiate now. You may want to speak to an attorney for advice how to handle any future claims brought on by bank against you.
But a short sale is much better than a bankruptcy...
NJ LAW Deficiency Judgments: Allowed if brought in separate lawsuit within three months after sheriff sale. Amount of judgment is restricted to difference between fair market value and loan.
Limits on Deficiency Judgments: Judgment allowed only on the note after foreclosure, but no personal deficiency judgment allowed. Deficiency is limited by the fair market value of the property, and action must be brought into court within 3 months of sale.
In NY deficiency requests are done by motion at time of proceeding Fight it. You could at least be warded the difference between market value and sold value at sheriff sale. Otherwise they will get what ever they ask for. Get an attorney it will be worth you money.
It may too late but always try!
Search Short Sales and foeclosure Deals at http://www.BuyNjShortSales.com