foreclosure?

Posted by dave on June 22, 2007 at 21:06:59:

I have a dilemna. I don't know if i should foreclose my house or not. Here's my situation. As you may all know, the house market has really gone down these past few months especially here in california. I bought my house 2 years ago where the market was still favorable. I bought it for $443,000. I have a 1st and 2nd on it. I already refinance my 2nd mortgage since it was an adjustable one. I don't have any equity
on the house. I want to sell it but I would take a very big loss since comparable houses here would probably sell it for $380,000. This is just enough to pay off my
1st. I really wanna move to another place and get rid of my house. I am thinking of just foreclosing but I really don't know the consequences. All i know is that it will affect my credit score significantly. I don't know any other legalities that comes with foreclosure.
Will the bank or the government go after me if I just walk away from my property and don't pay mortgages and property taxes? Will they take out money from my checkings or savings or even on my paycheck if I decide to foreclose my property? Please tell me my options on how to deal with this. I've heard about "short sale" and "deed in lieu" but i really don't know how it works. If it's just my credit score that's going to be greatly affected from foreclosing my property, then I can probably deal with that. I really wanna know what are the other consequences from foreclosing. Thank you so much for your time. I would really appreciate it if you could help me with your helpful suggestions. God bless...

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