[samuelluvsliz]

My home loan is only under my name and not my husbands, so since our payments are to high we are behind 3 months on our current loan. The thing is that my husband is buying another house in his name only and it is suppose to close escrow next week.

The thing that worries me is once we loose the home we have now if we will have to pay taxes on the difference if the home sells or if the bank will make me pay back the money some how.

I have also been told to file bankruptcy #7 to wipe out what I owe completely. Can someone please give me some advice and also let me know what happened to you if you already lost your home so I know what to expect or if there is anything I can do now before I get behind more on my payments. I asked the bank about modifying the loan but they told me that I have to get my loan current with them in order for them to do anything.

[Robert774]

Sam you need to be more specific as you have asked overlapping questions.

Currently there is a stay on any IRS obligation by an owner occupant who has lost their home via foreclosure/short sale.

A Chapter 7 BK does discharge all your debt, however your current mortgage holder will move to release the stay so that they can take over the property (their security). In other words filing a BK "buys" time for you to figure out what you want to do with your property and/or negotiate with your current servicer.

From what you describe, you should just consider giving them the deed in lieu of foreclosure. Have they given you a notice of default?

As to loan modification, you have to tread carefully because it appears you are going to move into your husbands new home. If so, you are no longer an owner occupant and are not eligible for any relief.

If this is going to be true, just give them the deed and this way you will avoid any potential misrepresentation or liability.

Hope this helps!