All Forum Posts by: N/A N/A

Jon,

Thanks for the response. Yes I live in Houston, I should have been more descriptive. Unfortunately I have very little if any equity in the house since I purchased at 100% (no pmi) in Aug 06. My situation is essentially I've had to liquidate much of my $ to assist a family member out of a major bind with their health (bless the medical system <rolls>) and that has put me into debt in a big way and my income barely covers my base expenses (not counting other necessities...gas... food.. etc). So bottom line I'm very much in way over my head right now.

I was looking at the short sale route and am talking with my realtor about such, problem is in the sub prime market everything is soft right now and there's TONS of foreclosures here in Houston to pick from. Apparently it's very easy to foreclose in Texas.. credit ding for years, creditors calling you, and that's about it... It's horrible, but for some the only way out...

Unfortunately with a short sale I'm on a short time line as I only have this month paid and I'm behind on everything right now... I'm going to continue to do some research and probably talk to a real estate lawyer and see what the worst case scenario is... but if anyone has TX experience and can chime in, much appreciation!

-J

Here is my situation.

I purchased a new home in Aug 06 and like many people who try to keep up with the Jones' I chose a house that I could "afford" but just barely. Now a year + later, I'm in a position to where the payments are eating me alive and I've had to dip into what savings I have left just to keep payments current. I'm now behind one payment and am facing foreclosure. I don't have the $ to come to the table to close @ a sale or keep payments up while the house sits on the market.

I'm trying to get a better understanding of my "worse case scenario" (foreclosure). I understand it mars your credit something horrible and virtually makes it impossible to purchase anything via credit. But what else can happen? Can they garnish your wage if there is a deficiency judgment? Can they take your car (that I need to get to work to support myself)? Can they go after your bank account (of which it is very minimal right now, but my paychecks are direct deposited there).

I realize the err of my ways and I shouldn't have purchased a home that i was not financially ready for. But I do want to be prepared in the event that I do foreclose, the repercussions, etc. I do not want to simply become a statistic, I want to learn from this experience (as painful and embarrassing as it may be).