Retiring from job, if I cannot pay my mortgage payment?

I will be retiring from my job in 2 months due to family problems, and health. Cannot pay my home becasue I am going to another city. I do not have any equity in my home, because of a refinance. If I go into foreclos ure. will the bank be able to use my retirement money that I need to live on. to pay any money that I would owe them.

Public Comments

1. They will just file a lawsuit against you for whatever you owe. You should sell the house quickly and try to work out a payment schedule with them for the difference between the loan amount and the sale price.
2. You may try doing a short sale on the house so you can get out from under it a little faster. Basically a short sale is selling the house for less than you owe. Depending on your financial situation, some banks will then write off the difference and report it as "income" to you. Basically that means you will pay taxes on the difference just like income. It doesn't always look good on your credit either. Your best bet, try to sell the house for what you owe as quickly as you can. Be sure to consider any realtor and closing fees when you price your home.
3. Sure, they can attach to any of your assets - they'll garnish any of that income you receive. Why not consider a lease option? You set the selling price and you know your mortgage payments are being made for a year.
4. If it's not too late, you could look into something called a reverse mortgage. It's designed for retirees who no longer have the monthly income to make those big mortgage payments but have equity in their home. Basically, the bank takes your mortgage payments out of the equity when you sell the home or pass away. I'm sure the bank ends up making a lot of interest but, the perk is, you don't have to come up with that monthly payment if you are no longer in a position in life to do so.
5. A reverse mortgage makes no sense, you need equity for that so disregard that response. Your best bet right now is to do a short sale, which is when the lender accepts a lesser payoff on their loan so you can sell your house. Many real estate investors are very good at this technique. I'm not sure what area you're in, but I have contacts in many states so let me know if you need help.