Your Liability

Are you potentially liable under the note?

You might want to ask the following questions when you meet an attorney.

Did I sign the note? There is a difference between the note and the mortgage. Sometimes other documents such as a personal guarantee or similar document might make you personally liable for the note.
Have I been or am I likely to be discharged in bankruptcy?
Is the house upside down or underwater? These are terms used to describe a property whose debt is larger than its value. If this is true, a deficiency is established for the values at the time the foreclosure process conveys title in a separate proceeding commonly called a deficiency hearing.
Are you a likely deficiency target? Not all foreclosures end in a deficiency hearing, even if the property was upside down at the time the title was conveyed by the court. The following are factors which might weigh on whether or not a deficiency will be sought by the lender.
- The lender. Different lenders seem to have different methods of deciding which deficiencies to pursue.
- Your income.
- Your assets.
- The nature of your hardship.
- Type of loan.
- Your exemptions

The factors that may affect your decision regarding what is best for you include but are not limited to the following:

Do you owe more than it is worth?
Is there a second mortgage?
Does the house need a lot of repairs?
Do you want the house?
Do you need to relocate?
Is it a bad loan?
Are you filing for bankruptcy?
Do you have other debts?
Can you afford the house?
Would you keep it if the loan was adjusted to the value, or if the interest rate was adjusted to make the payments reasonable?
Do you see yourself in the house long-term?

If you are asking the bank to work with you to either:

you most likely will be asked to provide documentation that will include some if not all of the following:

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