A made up scenario that is probably quite common these days...
A family has little debt outside of their house. In the last 2 years, they went from having $40K equity in their home, to now being upside down close to 50K. Both cars are paid off, they have no credit card debt, and they have close to 15k in savings.
Do to a great job opportunity out of state, they are seriously considering leaving the home to forclosure. With the current market, the house will be unsellable for at least the next 2-3 years. Renting the house out is not really an option.
What is to keep a family from foreclosing? I know your credit will take a major hit just like it would if you filed bankruptcy. Can the mortgage company go after your paid off cars? Can they go after your savings account? Can they go after your IRA's and 401K's?
A family has little debt outside of their house. In the last 2 years, they went from having $40K equity in their home, to now being upside down close to 50K. Both cars are paid off, they have no credit card debt, and they have close to 15k in savings.
Do to a great job opportunity out of state, they are seriously considering leaving the home to forclosure. With the current market, the house will be unsellable for at least the next 2-3 years. Renting the house out is not really an option.
What is to keep a family from foreclosing? I know your credit will take a major hit just like it would if you filed bankruptcy. Can the mortgage company go after your paid off cars? Can they go after your savings account? Can they go after your IRA's and 401K's?