Valentina -
I agree with all Rachel said and would like to make one other comment. When you talk with everyone, ask for their email address and send a short email after your conversation recapping what you and they said. This creates a paper trail. Rachel is right that many lenders don't want to talk with you until you fall behind but you want to be able to prove you wanted to be pro-active rather than re-active to your financial situation.

In many areas, especially California, where there are so many defaults on loans, short sales and foreclosures, lenders are being swamped with situations where things are dire or desperate aos you getting ready to miss a payment is really not that high on their priority list (although it should be).

Good luck and try to get legal advice to guide you as to the repurcussions that could occur in the future.
Trisha Lee REMAX Boone Realty, Columbia, MO
573-999-1000 TrishaLee@Remax.net

In a nut shell, not yet. Your question depends on what happens from here on out. The foreclosure process in California can about 120 days. If you go through that process and your home is foreclosed on you should be protected from capital gains taxes under the Mortgage Forgiveness Debt Relief Act of 2007. This is only the case if your home is your primary residence (no second or vacation properties). There are several other qualifications you must meet under the Act to have your debt forgiven. If can provide you with all the requirements if you like, or you can look it up online. Since I do not know you nor the specific facts involved you should contact your accountant, tax attorney, or you can call one of the free helplines. HopeNow is the best in my point of view. Their number is (888)995-HOPE.

You should know that you may have other options to foreclosure. Many lenders STILL won't talk to people who are not yet in default. I recommend being very persistent with your lender...in other words, KEEP CALLING. Make sure to write down ALL conversations and dates and keep track. Ask to speak with their loss mitigation department.

To learn about other options that may be available to you, you can read my E-Book, which provides a lot of insight and other remedies that may be helpful to you. It can be purchased at http://www.MortgageWalkawayOptionss.com. The bottom line is: don't give up on working out a modification with your lender. There are programs out there that may be able to assist you. Call HopeNow for starters. Let me know if you have any other questions and best of luck to you.