I live in Pompano Beach ,F, If the bank forecloses will I owe them money? I owe more than it is worth.

Asked by Lara, Florida Fri Jan 16, 2009

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Paula Bean, , Orlando, FL
Fri Jan 16, 2009
More info for you Lara and all others who it may benefit.

HR3648 is the Mortgage Forgiveness Debt Relief Act of 2007 - it was signed by President Bush on 12/20/2007 and excludes discharges of indebtedness on principal residences from gross income, and for other purposes. There are mitigating circumstances though.

Here is the link for those that want to see if they qualify:
http://www.govtrack.us/congress/bill.xpd?bill=h110-3648

Additionally if your loan is a Freddie Mac or Fannie Mae loan, you have other options and resources available to you for loan modification if you want to stay in the house. To find out if you have one of these loans, you can look for your HUD1 settlement statement where you purchased and it will say so on the top of the form.

FHA also has some good refi programs available. With so many options I would highly advise getting in touch with an agent and a real estate attorney to see what may be best for you and your family. Anything is better than foreclosure, that will hurt your credit for a long time.

Hope this helps ;-)
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Paula Bean, , Orlando, FL
Fri Jan 16, 2009
Lara,
There was a new law enacted by President Bush in Dec that will affect whether you owe money or not. Is it your primary residence? Homestead?

On another note, why don't you get an agent and do a short sale rather than let the bank foreclose? This is much better on you for your credit nce it shows up as a sale, not a foreclosure. Also, most lenders are working with homeowners to do mortgage modifications if you want to stay in your home.

Have you tried one of the other two methods above with an experienced agent who can help you? If not, I would highly recommend that over foreclosure.
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Dawn Smith, Agent, Boca Raton, FL
Fri Jan 16, 2009
Yes, unless you are able to make arrangements with them to forgive the balance once they foreclose and resell it.

There are many programs available to help you, whether you are interested in staying in your home or selling. The worst thing you can do is nothing. Contact your bank for options available to you, or you can give me a call. I am a certified Short Sales Specialist and deal with homeowners in this situation on a daily basis.

Hope this information helps.
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