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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55136
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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My husband dies almost 4 years ago, I used his life insurance

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My husband dies almost 4 years ago, I used his life insurance money to fix and upgrade our home. For the past 3 years, I have had several realtors to help me sell my home with no sucess. I refinanced in December 2012 for a lower finance percentage of 3.75%, which drop my monthly payments approximately $400 (which is interest not principle), this does not include the property taxes and home insurance which is $400-450 monthly. I live pay check to check and now my basement has major leaking issues, which will cost over $10,000 to fix. Personally, I have had enough and want to walk away from this home d/t house issues and financial struggles. I have a FHA HUD mortgage loan....what should I do?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. Can you summarize your financial situation other than this house? What kind of other assets do you have? What is your income situation? Thanks.
Customer: replied 3 years ago.

I'm trying to get rid of my house. Between the house and utilities continues to place a strain on the monthly budget. Every thing else is paid except 2 credit cards which were used on house repairs.

Thanks for following up on this. You can walk away from your house and likely have no further risk with regard to the house. Kansas, unfortunately, is a deficiency state...which means the lender can pursue the borrower for the deficiency, BUT, in Kansas, the deficiency is measured by the amount owed on the loan in excess of THE GREATER OF; i) the amount of the foreclosure sale or the fair market value. Since, the fair market value of your house is at least equal to or greater than the amount owed, there will be no deficiency and thus you would have no further liability to the lender. Given this, you might simply contact your lender and propose a deed in lieu of foreclosure. A lender would generally be willing to do this because the a deed in lieu of foreclosure saves the bank the time and expense of foreclosure. If the bank doesn't agree to a deed in lieu of foreclosure with the bank (where the bank accepts a deed in exchange for releasing you from the loan), then let the bank foreclose and walk away.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is: