To foreclose or not to foreclose.

[JLPKEP]

My husband and I are trying to decide if foreclosure is an option for us. The home is in my name only so shouldn't effect his credit. I'm currently out of work and we are having a hard time making our house payments. He is already working 60 plus hours a week so there is no room for anymore overtime. I'm trying to find work with no luck. We have a new baby and lots of medical bills since she was born.

We have talked some about foreclosure, but are undecided. Our home like most is valued now at much less then what we owe. We tried to refinance a few months ago with no luck. The house is in my name only as I purchased the home before we were married.

My questions are: (We live in Georgia)

If the bank auctions the home for less then what I owe will I be charge the difference? Will I be taxed on the difference?

Should I get a lawyer? Does anyone have any to recommend in Georgia that are low cost?

Feel free to give advice on other things I should expect to happen if we foreclose.

Thanks in advance for your help.

[Cat Damiano]

Hi JLPKEP,


Welcome to the forum and thank you for joining.........


Yes, a deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage secures. The lender must seek a deficiency judgment within thirty (30) days after the foreclosure sale. The foreclosure sale must be confirmed.

Here is some information on the process in Georgia;

Georgia Foreclosure Laws - Foreclosure.com


Here is some other members in GA that are in the process;

Under Water in Georgia and Walking Away

Packed Up and Moved Out in GA - 5 months into my walk

Advice on walking away in GA

walk away in Georgia...........here goes


We would be unable to refer you to any one specific attorney here on the forum, but if you feel that you would need an attorney consult which is usually provided by the attorney at no charge, you can look in the following;

State Bar of Georgia - Need an Attorney?

National Association of Consumer Advocates | Consumer Protection Advocates and Attorneys - Help for Consumers


Tax related questions would need to be asked of a tax professional in your area, here is a brief overview of the Debt Forgiveness Act;

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation