I lost my job last May, and as soon as I did I called the our lender to apply for a loan modification, we filled out all the paperwork, and after 8 weeks called back they said they " LOST IT ALL" and had to re-apply.. so we did, they said to send what I could to keep it out of foreclosure and so we did... last week we received a letter from them stating the loan modification had been denied due to the value of our property, and they were starting foreclosure proceedings.

My Question is??

We would actually like to be RID of this house!! The mortgage is KILLING US ($2500.00 a month) and move back into our first home that we have had as a rental. We tried to sell that home 4 years ago when we purchased this home and couldn't, but that mortgage is only $1400.00 a month... (HUGE SAVINGS!! )

So... If we foreclose on our primary home, the BIG one... can they come after us for the smaller one too? Will they be able to attach the negative balance owed from this current home to the "rental" (second home)

and also we have 40K in credit cards we are trying to pay off... is Bankrupsy a better option for us? We need help, has anybody gone through this before... How long do we have? I have 4 kids (small one's 9,6,5,2) and I really don't want to turn their whole world upside down in before Christmas?

Please help anyone with advise.
God Bless,
Desperate in Denver.

Even if you go the bankruptcy route, bankruptcy takes months to finalize. Right now you should go see a good bankruptcy attorney and discuss this situation with him to see what your options are and aren't. It might be the best consultation you ever had for your immediate situation.

Well yes they can do all the bad things you are thinking, now often they don't. But bankruptcy may also have you giving up both houses and starting over, but only an bankrutpcy attorney after reviewing your case completely can tell you for sure