What do I do about my home in another state or a failed modification?

The housing market across the United States has taken a turn for the worse in the last several years.  Foreclosure rates continue to rise, and people are left with deficiencies left owing on the note after the foreclosure sale.  After the sale of the property, the creditor or mortgagee bank typically pursues the former home owner on the remainder of the amount owed.

The former home owner is served with a lawsuit, and if a judgment is taken against them, then interest will continue to accrue on the judgment and the amount that is owed will continue to grow.  Many of the states across America are even having a more difficult time with the depreciation of their real estate than Texas.  Many people move to Texas and are unable to sell their old home in their former state and are forced to file a Chapter 7 bankruptcy in Texas to discharge the entire amount of the old mortgage loan.

Another trend across America is a failed loan modification attempt.  Banks often indicate to people that they believe they are eligible for a modification.  After months of sending in documents to the bank to get approved, many people are ultimately turned down for the modification under the Obama Plan and have no other means of saving their house than filing a Chapter 13 bankruptcy.