So we just closed on our new house recently and our plans our to rent out our current home. Like many others out there, we owe more than the house is worth so it's either rent it out or as a last resort let the old house go into foreclosure.
If our renters fall through or we are not able to collect the rent we need to get....then we are preparing for the fact that we might have to walk away from the old mortgage. We don't want to do that, but we WILL NOT have 2 mortgage payments so it's either rent or give it up.
My question is...in this worst case scenario where we do have to give up our old home....could the bank come after us for our new home? Or would our credit just take a bad hit? My aunt told me they are starting to "come after people" but I don't see how that's possible since its the mortgage companys who are unwilling to work with people in this economy....
We owe 60,000 on a house that is now only worth about 10,000 and that's BS...we couldn't sell it if we wanted to not when houses down the road are selling for 10-13 thousand
What are our other options? Could we short sell it? Or Quit Claim Deed it over to someone to relieve us of the debt????