Upside Down Mortgage

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Question: Foreclosure: Walking away from my house?

This is the last thing I want to do, but I'm afraid I'm out of options. I live paycheck to paycheck and have enough debt to dip into credit cards monthly to pay utilities. My wife just lost her job and there's no way we can pay our credit card bills and mortgage. We bought our home in Colorado in 2001 and we're now nearly $100K upside down with our 1st and 2nd together making it impossible to refinance. If we walk away, I know her mom will let us stay at her house until we're back on our feet. I understand many of you will judge me for bad decisions, but I'm really looking for constructive responses. Here are my questions.

1. Can the lender come after my assets or garnish my wages?

2. What happens to the 1st and 2nd mortgages?

3. The other drastic option would be a credit card relief company. Is this worse than walking away from my house?

Thanks in advance.

Answer: If the house is worth less than you owe then yes they can come after you for the remaining amount. I would look into a consumer credit company before walking away from your house as long as you can still pay your mortgages. Also you have to think about how long you will be staying at your moms if you walk away. You won't be able to buy another house and some apartments might not take you either. Or you could lastly talk to an attorney and see about filing bankruptcy.

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