[Monique]

I currently reside in Bakersfield, Ca. I'm thinking of letting my home foreclose but want to make sure I'm making the right decision. My credit has always been pretty bad (its already below 600) so I don't know how much worse it can get. Although I have a good job, in these times I just cant seem to afford the 1450 a month mortgage payment. If I try and sell my house, I could come up even or maybe even be a few grand short of what I owed. At least with foreclosure it gets me time to save up and be back on my feet and save up for renting a new place when the foreclosure goes through. I just would like some opinions on what would be the best suggestion...Although im currently NOT behind in my mortgage (I havent paid aprils yet) It is going to be pretty much impossible for me to do this month. Also, I was wondering how going into a foreclosure affects your taxes the following year. Do we have to pay out of pocket expenses?

[fishlakeguy]

This is what happens when someone forecloses.The bank takes physical possession, hires a crew to do any work that needs done in order for it to be sell-able, and lists it with a realtor. Once it sells, the bank will sue for the difference of what you owed versus what it sold for, PLUS the costs to fix it up. With the housing market dropping the way it has, people are looking at 1000's of dollars [or more] they have to pay back to the bank. Once a judgement is granted against you by the courts [which it will be], you will not be able to get a loan for a used bicycle until the judgement is satisfied. Plus your credit will be ruined for up to 10 years [but judgements never go away until paid off].Banks do NOT want you to foreclose, and are willing to work with you if you contact them BEFORE the foreclosure process starts. Plus Obama has made some incentives for the banks to help people in your case out.Options: Sell your house before it goes into foreclosure, restructure your mortgage so you can afford it, or take a part time job to make up the difference. You can make $1000 a month delivering pizzas if you are serious enough.Property taxes usually have to be in arrears for a year before they take the property, so you have some extra time there.Good luck to you.