Property Question & Foreclosure

[micbur]

What is the name of your state? GA

First.....I have a possible pending foreclosure as the mortgage company royally mucked me and my family when we closed on our mortgage. Kinda feel like the new Capital One commercial where when the lady closes on her ARM she has a monkey on her back!! No other bank would allow us to roll in 47.49 acres in with our loan. They did with stipulation that I had to remain in the ARM for a year at which time I could refi. When I attempted to refi I found that no one would do the a refi with this much property. have had to endure the payment increases as well as pay reductions and layoff to where I can no longer afford my home. It has been on the market for 6 months and because of the size of the property, size of the home (5 bedroom/3.5 bath) and the location (very rural) we have had no buyers. So now the bank is foreclosing.

Have a question about the paperwork I received from the lawyers office. The parcel of land the home is located is 49.49 acre. We only financed 47.49 acres...the other two acres is financed with another home on the property. In the foreclosure sale can they legally sale the 49.49 acres even though only 47.49 was mortgage? What about the lender that has the 2 acres in with the other home?

The two acres were never spilt out since technically I own all the property. Can I go ahead and have the two acres cut out or can the foreclosing bank take all 49.49 acres even though the loan only shows 47.49?

Next question is an equity line I have on the property. Since I would no longer have the property that covers the equity line....what happens there?

What is worse on credit...showing a foreclosure or a bankruptcy? My credit is already ruined in trying to keep my home as I have used all my retirement money and such and I am still behind. Have to realize that my initial payments were $2,100 a month.....they are now 4,500 a month...should have sold a long time ago!!