Foreclosure question?

shawnmid · Joined: 04 Oct 2010 Posts: 1

I currently own a home in Kansas City, Mo. I am facing foreclosure and I've found myself in a position where I can either keep my house or let it go back. The area in which I live has fallen quite considerably. Home prices have fallen from 80-100k down to 5-15k. My home, I owe approximately 60k on and it might be worth 10k. I've tried to get a reduction in principal, Citi Mortgage will not do anything for me. They are servicing the loan as it is an FHA loan. My question is, if I let the home go back and I purchase another home out right (no mortgage), can they come after me and attach a lien against my new property? I do have a "non-judicial" agreement within my loan so they do have the right to sell it but as the market stands, it really would not sell for much in its present condition. I know that there has been all types of new legislation pressed through to protect the average consumer but I'm not sure as to how protected I might be. Any and all help would be greatly appreciated.

Thanks,
Shawn