Possible foreclosure, need help!

[RTDJG]

What is the name of your state? Missouri


I am getting completely frustrated trying to figure out my rights and what responsibilities/consequences may arise out of my house foreclosing. Due to several different factors,(I lost my job, we had costly vehicle repairs to make, a company that was supposed to refund money back to our checking account didn't do as promised and caused our account to go into overdraft taking $1,000 from us in 2 weeks and still with a negative balance of $1,200, had sickness in the family) my husband and I are not able to keep up with house payments and other bills. We are behind on pretty much everything. We did a hardship withrawl from my husband's 401k so we can get caught up on at least 1 house payment so we can keep it at least until the end of July. We have past due on our car payment, which we also can't lose because without transportation my husband has no way to get to work. It seems foreclosure is about the only option we have left. I have read some about short sale, but we don't have money for any out of pocket expenses that may arise in trying to sale. I have also read on numerous sites that Missouri does not allow deficiency judgments, but did read on a couple that it is possible. Which is correct? Do lenders ever accept the deed in lieu if you can't attempt to sell? As it is we are probably going to have to relocate out of state to stay with family just so we can feed ourselves and our 3 children. I don't know what else to do. We are afraid if they foreclose the house won't sell for what we owe and they will sue us for money we don't have. Our lives are completely upside down and I need some help sorting through my options. Thank you.

[dmiller12]

I would start by contacting a good real estate agent that is experienced in short sales. Explain your circumstances and inquire up front if there are any out-of-pocket expenses to you prior to sale.

I believe Missouri is a non-recourse state which means typically they do not pursue deficiencies but I'm not sure if there are circumstances that would result in recourse. Someone else may be able to answer that question.

Good luck.

[es1970]

You should contact a "foreclosure counselor" as soon as possible. Your county probably has a

Also, check out [url]http://portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL[/url]

The above link has some really great ideas regarding alternatives to foreclosure. The best thing to do though is to act quickly by contacting your lender and asking for the "workout" department to see what they can do for you. Explain your hardships and situation. If they don't know about these things then they won't help, but if they do know about everything then they might be willing to work with you.