[Richard B]

...primary mortgage (foreclosure)? The small condo we live in can longer support my growing family, and I would need to dump half of my savings to sell it (upside down to tune of $40K with realtor/transfer costs) assuming I can even sell it. In this economy, I cant justify it so I am investigating this alternative. Here are some of the specifics:- the property and mortgage note are both in my wife’s (maiden) name - she purchased it before we were married - located in Michigan.- loan documents appear to be non-recourse (there is a power of sale clause – need attorney review of documents).- Judicial foreclosure vs. foreclosure by advertisement – what is more likely? To but things in perspective the loan balance is $114K.- Deed in lieu and/or short sale are unlikely since I have funds to pay, but would substantially drain my funds and when my job is not very secure.- My wife pays private mortgage insurance every month since loan inception – does this cover the lender for default? If so, would that reduce the probability of being sued?- As stated, property/note are both in my wife’s name. Can they sue me as well? Even if they just sue my wife, how can you differentiate between what is hers/mine (she doesnt have any separate accounts).I have done alot of research, and I realize no one can give me a definite answer. I understand the hit to credit, etc, etc. I am working off of probability right now. Thanks in advance for any help!

[Sam B]

Try talking to your lender and seeing if they will do a short sale. A foreclosure will cost them more money than a short sale at this point. You also would not have as big a hit on your credit so you might be able to buy something else immediately.