Do we have to talk with our lender during the foreclosure process and why? 7 Answers as of September 07, 2015

We have received a mortgage foreclosure summons, but we are not interested in fighting for the house. We're wondering what happens if we don't talk to our lender during the foreclosure process and what happens if we do not go to court. Also is it true that we can file a form that will get us out of the taxes next year (because of the "addition to income")? Should we send our lender a letter letting them know that we are not abandoning the home during the process? And finally, is bankruptcy the best way to go?

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Ronald K. Nims LLC | Ronald K. Nims
You've already had a foreclosure suit filed against you so your credit is shot. Depending on your state and county, an unopposed mortgage action can take anywhere from 2 months to 6 months. By filing a answer in the mortgage action that goes up by several months. There is no income from "forgiveness of indebtedness" due to a foreclosure, if the house sells for less than you owe, the lender has a judgment for the deficiency, so they can garnish your wages, seize your bank account, etc. In order to get the negative equity eliminated you need to have the bank accept a short sale or a deed in lieu. Bankruptcy will eliminate the deficiency and delay the foreclosure.
Answer Applies to: Ohio
Replied: 9/7/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I don't know what state you are in.... But if you don't want the house ignore them. A bankruptcy is a good idea because it means you have been declared insolvent. When you are insolvent you file form 982 to get out of the tax problem.
Answer Applies to: California
Replied: 9/2/2015
Mauritz Van Niekerk, Attorneys at Law
Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
Bankruptcy will get you out of your 1099 issue that is coming but you should always consult with a Lawyer first.
Answer Applies to: New York
Replied: 8/31/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
You are not required to speak with your lender, but since a foreclosure is a very damaging thing to have happen, you might want to consider other options in order to prevent foreclosure. Your mortgage company can explain these options, as can a local bankruptcy attorney or a realtor. You could attempt a short sale, you could offer a deed in lieu of foreclosure, or you could look at various options to keep the property, such as by reducing the monthly payments or creating an income from the property by renting it.
Answer Applies to: Nevada
Replied: 8/31/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
No responsible lawyer could answer a question about whether or not you should file bankruptcy without a lengthy discussion and reviewing many facts and numbers. If you do not respond to the Summons and Complaint the creditor will win a judgment of foreclosure by default, and you would lose any opportunity to disagree either with the creditor's right to foreclose, or with the amounts demanded, or facts stated. Generally I treat foreclosure complaints somewhat differently trying to preserve all the clients rights. You could let the creditor know that you are not abandoning the property, and that you want the full redemption period provided by law. (It's several months longer if you are still living in the property.) Good Luck.
Answer Applies to: Wisconsin
Replied: 8/31/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Bankruptcy will not stop a foreclosure other than temporarily. In California foreclosures are non-judicial, there is no court to go to. One day the home will be sold at auction and you will cease to own it.
    Answer Applies to: California
    Replied: 8/31/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You should not abandon the property because you are still liable as a homeowner. You should try to do a short sale and/or a bankruptcy to get rid of the liability.
    Answer Applies to: New York
    Replied: 8/31/2015
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