My question involves a foreclosure in the State of: West Virginia
I own a home that is now worth about 200k. I owe 207k on the first and 80k on the second. The first was a refinance of the purchase and the second is a HELOC that was taken out for home improvements and bill consolidation. The lender on both mortgages is GMAC.
I refinanced and took the second out at the top of the market when the property appraised at 315k.
Now I'm having a little trouble and I haven't paid as much down on the second as I planned to since my income is reduced. I can afford to pay my current bills but now have 2 teenagers that need to get back and forth to work in the summer. I can afford to buy a couple of "junkers" for that reason but my wife's car has broken down....again....has 250k miles and is not really worth repairing.
My youngest daughter has scoliosis and may need surgery.....My health has declined and medical costs.....perscriptions and tests are cleaning me out.
I have never missed a payment on anything and always payoff the medical bills within a reasonable amount of time.
I'm very upset but my house is not worth what it used to be and I feel that I'll never get the equity back unless I hit the lottery....I don't play.
I feel the stress of this situation and work and everything else has something to do with my health problems and feel we'd be better off renting. I know financially month to month it would be cheaper.
What would happen if I just let the house go? I'm not sure of the laws in WV and the IRS laws and can't afford an attorney to tell me.