Please Help

[Vsommerv]

What is the name of your state? OHIO
I pay private mortgage insurance and my loan was an FHA loan. I am unable to continue making payments after a tax reassessment in our neighborhood. If I foreclose will the PMI I have been paying make sure the lender is paid in full so that I wont have to pay on any deficit.
i am currently trying to get some type of hardship. When applying for hardship will they look at money I have received from student loans and retirement money that I have saved?

 

[MortgageGuru]

Consider refinancing your home on a Streamlined FHA loan. You may be able to lower your monthly payment enough to hedge the difference. Your liquid assets will be reviewed just as your total liabilities will. As long as you are not more than 30 days late you should have no problem refinancing to lower your payment. Allowing your home to go into foreclosure will needlessly trash your credit. There is no guarantee that the FHA MI will cover the entire balance after the foreclosure sale.

 

[HUD-1]

The FHA MIP will pay the lender off the full amount of debt owed. Generally, FHA does not pursue a deficiency judgment against the borrower unless there is fraud involved. However, you MAY find yourself with a tax liability. If you are solvent, the difference between the amount owed and the value at foreclosure could be considered as taxable income.

Applying for a hardship? As part of a temporary fix, the lender could offer a forbearance plan, a modification or a partial claim. I think the problem is that you have a permanent increase in the mortgage. If there is no corresponding increase in income, you may be in a house you cannot afford. How big was the tax hike?

MG is right, if your interest rate is higher than the market rate, a streamline refi would permanently decrease the P&I potion of the mortgage payment.