Any experience with Florida foreclosure?

[Radiance]

State of: Florida

I am about to stop payments on my mortgage. (Maintaining 1 baby, another on the way and two disabled parents) My mortgage lender had already reduced my interest rate for 6 months before my parents became disabled and my new pregnancy)

I estimate I owe at least 60K more than what the house is worth.

My main concerns are:

Liability for deficiency, although I plan to negitiate a short sale/deed in lieu. But if foreclosure I have to pay 60k out of pocket?

Tax liability, when I took this loan I used the cash out to pay out debt not to buy or improve the house. Taxes on 60k are much higher that any moneys I can save up during foreclosure rent-free months.

Stress caused by foreclosure, shame and having to show up at hearings.
I am not elegible fot chapter 7. I make "too much" money.

Inability to rent on a decent place with decent schools after a foreclosure.

What should I do?! I am trying to relax, really, but this is already affecting my health, I am unable to eat and being pregnant that is not good news

[ActYourWage]

If you do not belong to a church, I would fine a good bible based church that might have a care center. They can help you out or at least point you in the right direction.

[Radiance]

I will reach out to my church to see what help is available.

I think I need to renegotiate with my lender for them to change the loan terms again.

If that is not acceptable for them, then I would need them to accept the deed in lieu of foreclosure and accept partial payments until that paperwork is done.

I might be able to rent in a decent place before my credit score gets hit.
As per tax liability, I imagine IRS will accept a payment plan, right?

[Regis]

Hi,

In order to prevent foreclosures, homeowners in Florida can opt to for pre-foreclosures. The Florida HOPE Task Force has developed an action plan to address the foreclosure rate as well as methods to save property ownership for Floridians.

[p_wyt_12]

Yeah. There are options for foreclosures right? Like short sale or something. Would that be applicable with your situation?

[Ramose]

I'm not sure what your current income is but you might be able to find a business that can create a budget and can deal with the banks for you. That way you might be able to keep your house.

I don't live in America but maybe these sites may be of use:
Take Charge America
Help With Bills

[SnoopyCool]

First of all, congratulations on the new baby. I hope you feel better soon and can get some peace regarding everything else. Take care of yourself.

Next, IRS will work with you on a payment plan. They aren't as horrible to work with as most people think.

Can you do a Chapter 11 bankruptcy?

http://www.irs.gov/publications/p4681/ch01.html#en_US_2011_publink1000244088

Bankruptcy

Debt canceled in a title 11 bankruptcy case is not included in your income. A title 11 bankruptcy case is a case under title 11 of the United States Code (including all chapters in title 11 such as chapters 7, 11, and 13), but only if the debtor is under the jurisdiction of the court and the cancellation of the debt is granted by the court or occurs as a result of a plan approved by the court.
How to report the bankruptcy exclusion. To show that your debt was canceled in a bankruptcy case and is excluded from income, attach Form 982 to your federal income tax return and check the box on line 1a. Lines 1b through 1e do not apply to a cancellation that occurs in a title 11 bankruptcy case. Enter the total amount of debt canceled in your title 11 bankruptcy case on line 2. You must also reduce your tax attributes in Part II of Form 982 as explained under Reduction of Tax Attributes, later.

Good luck.