Back story:
For specifics around real estate law purposes this house exists in Nebraska in a pretty small town. Small enough that roughly 1/3 of it is employed by the same company. A little over a year ago I took a job a couple states away. About a month after that it was announced that this company's largest competitor (headquartered several states away in an actual city, not some podunk nowhere town) was buying them out. The housing market completely shut down. These acquisitions take forever, it is still ongoing and hasn't completed yet. Once it finally does complete it will likely be several more months before the fate of the headquarters for company being bought is announced. Everyone expects large layoffs. Nobody needs two HR departments, two payroll departments, etc. Once that is finally announced it will likely take several more months for the layoffs to finally finish. In short I don't expect the situation for this town to change.
Meanwhile we have purchased a new home in the new state. We both have loans on our cars we are still paying off. My wife has some student loans we are paying off. We have not missed or been late with a single payment on the house, but we are running out of money. I can't find a renter for the house. We have lowered the price as much as we can, but there was not much equity built into it because we only owned it for a few years and it was an FHA loan with no down payment.
What options do I have here?
If I got for a short sale, can the difference from the sale and what I owed screw me tax-wise? I've read the bank can sometimes treat it as income tax but with it being an FHA loan that is fuzzy to me.
If I let it foreclose will I also get screwed tax-wise for the same reasons?
The house is currently in both mine and my wife's names. If I refinance to put it in my name only, can the bank still come after my wife for anything and will it affect her credit still since we are married?
If we foreclose or short sale can the bank come after us for anything? Sue us for the rest of the principal? Go after our cars? Anything like that?
We have to take some kind of action on this before we dry up but I want to make sure I'm taking the path of least "getting screwed over". Appreciate any advice.
Submitted August 10, 2017 at 05:34PM by helpmedropthishouse http://ift.tt/2vJt6M3
