Unemployed, upside down on my mortgage, and getting a new job out-of-state. What should I do with the house?

I purchased my Florida house for $225K which is now worth around $160K. I lost my job but was able to find one in another state. People are telling me to purposefully foreclose. They say the difference between what it's worth and what they sell it for will be forgiven, I will have to pay income tax on that amount, and my credit will be shot for only 3 years. Is this true? What happens with a short-sale compared to this?Unemployed, upside down on my mortgage, and getting a new job out-of-state. What should I do with the house?
ACtually, the scenario you just described is a short-sale.Unemployed, upside down on my mortgage, and getting a new job out-of-state. What should I do with the house?
In a foreclosure, the difference between what you owe and what it's sold for is NOT forgiven---not unless you have somethign in writing from the bank that says this. Your people are idiots.


Have you checked into a short sale? Call the bank and tell them you need a short sale--and you want the difference forgiven.


Your credit will be shot for 7 years after the foreclosure--that's how long it stays on there--good luck trying to find a house or apartment in your new state.


I wont rent to people with foreclosures--the same reasons they have for not paying their mortgage become the same reasons they have for not paying my rent.
If the lender or whoever owns your mortgage agrees to let you sell for less than the loan balance and agrees to accept that amount as full payment, you have a short sale. You should get that agreement in writing and save it forever. If the bank forecloses you will owe them the difference between foreclosure balance plus a lot of foreclosure fees and whatever they can sell it for. The short sale and a foreclosure will both hurt your credit, but the foreclosure will hurt it a lot more.
NOOOOOO... foreclosure is the worst option possible. It means you couldn't afford to keep the house. At least a short sale is basically an agreement to sell it for less than it's worth - which isn't as bad. It's also easier to recover from the credit score plummet of a short sale than from a foreclosure. Who have you been talking to?
dont trust me on this





im letting my house go, but my lawyer guarantees me another 1-2 year(s)





im jus gonna find an apartment which is actually across the street from my house.





bein a nurse doenst make it too hard to find a job.





my lawyer tells me im gonna be ok. but she could jus be chasin my money





im in florida to btw
Give it up for rent to someone wait until housing goes up