Foreclosure in AL

Posted by Joe on October 22, 2006 at 06:58:25:

Some history, last year I refinanced my house to get out from under PMI into a 5yr interest only 80/20 loan. First 80 is interest only, the 20 is a Home Equity traditional 30yr. Fast forward to this past March and I was laid off from my network security consulting position. During this time my daughter had a kidney infection which required hospitalization (she lives in MA). I put my house on the market because I knew I couldn't afford it, and priced it for what I owed plus realtor fees. Took a job which paid 10K less per year and about a month after I started, they were bought out by a larger bank. Last to hire, first to fire came to mind so I found work in Northern AL and bought a house here due to the fact that I had a prospective buyer on my house with Owner Financing. This buyer has backed out and I am now 2 months behind and cannot afford to keep the house. I also recently went through another divorce and my child support/child care, the medical bills, etc are too much to keep the house.

I have been working with my lender and we have discussed Deed in Lieu foreclosure since I pre-qualify due to my financial situation. Since both loans are serviced by Wells Fargo 80/20, what are the implications involved with the foreclosure/deed in lieu? I am worried about a deficiency judgement and cannot file for bankruptcy due to my job and the security clearance involved. I am worried to say the least.

Follow Ups:

Re: Foreclosure in AL - ForeclosureFish 08:45:20 10/23/06 (2)
- Re: Foreclosure in AL - Joe 08:52:40 10/23/06 (1)
  - Re: Foreclosure in AL - steele in minnesota 15:50:51 10/23/06 (0)

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Comments:
: Some history, last year I refinanced my house to get out from under PMI into a 5yr interest only 80/20 loan.  First 80 is interest only, the 20 is a Home Equity traditional 30yr.  Fast forward to this past March and I was laid off from my network security consulting position.  During this time my daughter had a kidney infection which required hospitalization (she lives in MA).  I put my house on the market because I knew I couldn't afford it, and priced it for what I owed plus realtor fees.  Took a job which paid 10K less per year and about a month after I started, they were bought out by a larger bank.  Last to hire, first to fire came to mind so I found work in Northern AL and bought a house here due to the fact that I had a prospective buyer on my house with Owner Financing.  This buyer has backed out and I am now 2 months behind and cannot afford to keep the house.  I also recently went through another divorce and my child support/child care, the medical bills, etc are too much to keep the house.  

I have been working with my lender and we have discussed Deed in Lieu foreclosure since I pre-qualify due to my financial situation.  Since both loans are serviced by Wells Fargo 80/20, what are the implications involved with the foreclosure/deed in lieu?  I am worried about a deficiency judgement and cannot file for bankruptcy due to my job and the security clearance involved.  I am worried to say the least.