If my home goes into foreclosure can my tax refund be seized and wages in the TX?

Deal Score0

I started late on my bills because I was laid off from a job. I find it very difficult to pay my bills with little savings I have. I have 3 children. I have in my house for 7 years and I do not want to lose, but I had to. I am not yet in foreclosure, but it will not be long before it happened. My mortgage company not working with me and I called today the hope that has not helped. I fear that if there is a balance to the mortgage bank auctions off my house and I can not pay they are gone, my income tax on income will be garnished? I live in Texas. I know that bankruptcy will not stop the foreclosure, but should I file? I have no one to lend me money and my credit card is not good so I can not able to provide a loan. Any advice would be appreciated. Dank.Ich start late on my bills because I was laid off from a job. I find it very difficult to pay my bills with little savings I have. I have 3 children. I have in my house for 7 years and I do not want to lose, but I had to. I am not yet in foreclosure, but it will not be long before it happened. My mortgage company not working with me and I called today the hope that has not helped. I fear that if there is a balance to the mortgage bank auctions off my house and I can not pay they are gone, my income tax on income will be garnished? I live in Texas. I know that bankruptcy will not stop the foreclosure, but should I file? I have no one to lend me money and my credit card is not good so I can not able to provide a loan. Any advice would be appreciated. Dank.Weitere information: My house is worth less than what is on it I know I have a balance due. There is no justice, and I can not because no jobs and bad credit refinancing.

3 Comments
  1. Reply
    Amy P
    May 2, 2011 at 6:05 am

    Since you have been in your house for 7 years, do you have any equity built up? As long as you don’t owe more on the house than what it is worth, you need to sell it – even if it means you don’t actually make any money and you break even, it’s at least going to keep you from further damaging your credit and hopefully allow you to own something in the future.
    If you owe any money to the government, your wages can be garnished, but if you only owe money to the bank, they are taking your house for you not paying the loan. The one thing you need to be concerned about is the debt that you walk away from can be considered income that you have to claim on your taxes. So, let’s say you owe $ 100K on your house and that is what you end up walking away owing the bank. You may have to claim an extra $ 100K on your tax return and pay the income tax on it. That would be thousands of dollars that you would owe the gov’t.
    I would try calling the mortgage company again and escalating your issue as far up the chain as you can. There are so many foreclosures and bad debts that the banks are dealing with, they don’t want another one. They lose a ton of money on these deals and if there is a way to keep someone in their house and at least paying something, it will benefit them.
    Good luck to you!!

  2. Reply
    msnoose
    May 2, 2011 at 6:23 am

    I’m not sure of the rules of your state or the mortgage company but I do know before you do anything you need some Free credit counseling. Ask people for recommendations, look on the web for someone near you but do not pay for this service because they are scams and this service is provided free usually by Better Business Bureaus, Commercial services of your state, Financial & government agencies. Please don’t do anything until you have solid advice. Does someone do your taxes – maybe they could answer some of your questions.

    I wish you luck while I sincerely tell you not to pay for any credit services or counseling services.

  3. Reply
    Royael
    May 2, 2011 at 7:17 am

    I would go see a lawyer about this. I would also check the federal government’s web pages, because they have had several bail out options for people with mortgage issues. They may have some sort of grant. I know they had one last year for first time buyers. They may have something for someone trying to hold onto their property.

    You may want to consider re-financing your home with FHA or HUD. They have low interest loans.

    Leave a reply

    Register New Account
    Reset Password