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Old 10-16-2009, 10:37 PM
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Question

liens from state to state


We currently live in a house in Illinois. The property tax has jumped from the original $1500 a year to $2770.00 (The county was trying to raise it to nearly $4500 but we appealed....$2770 is STILL way to much for the dumpy area we live). Even if we had this house paid off we would be paying about $230 a month just to live here! So, we bought a house in another state to eventually go to when my husband retired.
Two weeks later my husband lost his job and we cannot handle to house payments on my meager salary.
We contacted our first mortgage company, and they insisted we try to short sale the home at fair market value for three months. Then lower the price and try for two more months. If we request a deed in lieu, we have to sign papers that we would be responsible for the deficiency. Our lawyer said NOT to sign ANYTHING!
Meanwhile, we found a website that takes us step by step through a foreclosure process. They informed us that we could go directly into foreclosure proceedings. My question is: can this mortgage company put a lien on our new home? Also, if we declare bankruptcy in a year or so (because of some deficiency judgment), would the lien be lifted?
The website rep said our balance is so meager that he doubted the mortgage company would come after us, and also, we would be free from the tax on the deficiency because of the debt relief act being extended into 2012.
With a short sale or deed in lieu of, you have to report a lot of stuff that we don't feel is any of the mortgage company's business. Supposedly you don't have to do all that in a foreclosure. We live in a very depressed town where houses for sale are just sitting there, and, with it getting into winter months, trying to short sale a home would be nearly impossible. Meanwhile we would be trying to make the payments. We have decided not to make any more payments and just go into foreclosure, but I don't want to have a deficiency declared on us, nor a lien on our new house. (I guess they would have to "find" it first, anyway). Can you shed some light on my questions please? Thanks.

Last edited by crimson1970; 10-18-2009 at 10:54 AM.
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