Bank levy, now foreclosure proceedings
We recently have run into some serious financial trouble. My husband was supposed to be in charge of most bills. A few years ago, his mother passed away and left approx $300,000 in an account. He withdrew the total amount within a year and was never told by the company he withdrew from about the tax penalty. SO.. we were charged with $48,000 in taxes to be paid to the IRS. My husband applied for a loan for $65,000 to cover the taxes; however, he didn't use the money for the taxes, instead it went to pay our bills for two years... now the money has run out and we owe for everything! Mortgage since July, electric for 3 months, phone for 2 months, and the bank loan hasn't been paid since Aug! The lawyer for the bank is now starting foreclosure proceedings to get the money. How do we save our reputation and our house from being foreclosed? Who do we try to work out a deal with? My husband was diagnosed with clinical depression 1 year ago and just "forgot" about bills but never told me he was using the bank loan for daily living and NOT paying any bills! How do we fix this now? Help please... we live in a small town and have kids. I don't want this in the local paper and definitely want to save my house!