I own a house in MS that has a first and second loan. The total of the two loans exceeds the value of the home by about $80,000. We now reside in TX. The house has been on the market since January. I have been unemployed since June 1. I can no longer afford to make the payments and wish to default on the loan. What are my options? Will either the first or second mortgage company have recourse if a foreclosure occurs? For example, can they come after equity in my home in TX, other assets (IRA, 401k, etc.)
1 Answer from Attorneys
I don't know what the law is in MS, but assume it is close to that of Texas. If you default, the creditors will foreclose on the house. It will be sold at public auction and whatever the deficiency is between that selling price and what remains owed on the notes will still be your liability.