What happens when house is worth more than you owe?

[suzyg]

To make a long story short, there was a job loss, medical disaster, another job loss, and another medical disaster. All of these medical bills have depleted our savings--we have nothing left but the equity in our home. Two years ago, we had to leave our small town and our home to take jobs in another city. We rented our home; added $400 to the rent collected each month, and made our monthly mortgage payments.
We had no luck in finding new renters when our current renters moved out in January. We tried to get our bank to refinance at the lower rates so we could afford to keep our home. They refused to work with us because of our poor credit, which consists of nothing but medical bills that are all paid in full. We have no other debts.
We live in Colorado. Homes comparable to ours in our area have recently sold for $175k-$200k. We owe $102k on our home. Currently, we are three months behind on our mortgage and as of April 13th of this month, our house went into foreclosure. Today, April 27th, it looks like someone is moving into our home.
After 25 years of marriage, everything is now gone. What will this bank come after us for next?

[Dan Bailey]

suzyg,
Om sorry to hear you are going through this... unfortunately, by renting the home out-it became an "investement property" and modification would have been almost immpossible.

Here are the forclosure laws by state:Foreclosure Laws - Loan Modification Forum - Loan Safe

[59Cottage]

If the house is worth more than what you owe, can you just sell it yourself - or get a regular refinance?