Sorry about the new user below... just a simple mistake of placement.
- As for your question, YES in most cases you still owe the money if you have not released ownership and been released from debit through a Bankruptcy Court or other legal action. - If your Lien Holder has repossessed the home or if it sells via a Short Sale or if you have just walked away from it... you should contact your Lien Holder to ask what their policy is and what they intend to do about it. Its your right to know. - A good BK Attorney may be good to consult. ----
I have found many people do not realize that there may be several months left before a full Foreclosure and in a case like that you could contact a good local Realtor to list and possibly sell your home, even if its a Short Sale....which would be better than doing nothing and letting the Foreclosure happen. You can see some info about Short Sales on the link below.
Hope this helps a bit,
-Don Sr. / Broker
If does end up being a short sale refer to this article by the IRS: http://hud2.towerauction.net/cgi-bin/e7_search.cgi.
There debt relief if part or all the mortgage is forgiven.
The Department of Housing and Urban Development is trying to help all homeowners. Please take some time to review information on their website. Housing Counseling agencies charge a fee. Some Counties, especially Oakland County offer counseling free to any resident.
This document may give you some more information
I agree, depending upon where your home is in the foreclosure or pre-foreclosure process a bankruptcy attorney may be your best recourse. There will be a fee.
If you've turned the home over to the bank and it sells for less than what your mortgage was for, the bank can choose to sue for the money. Will they go through the hassle? Depends on how much is owed, depends on bank, etc. I would contact the bank and ask what they will do in that circumstance.
But, if you're really concerned it is wise to speak with an attorney to give you some peace of mind.
Have you vacated the home already Debbie? There is a possibility of a short sale if you have not and are still within the redemption period. Opting for a short sale is considerably better for you than foreclosure.
Let me know if I can be of any further assistance.
Best of luck,