Posted: Thu Mar 26, 2009 1:25 am Post subject: Should I let rental home go to foreclosure
I own 3/2 rental house in AZ in my and wife's name, now vacant may not find rentor, upside down, rent income less than payment by$200/ worth about $35k less than owe/, not good future, payment will be adjusting upward...I think I need to walk and let it foreclose......Can't short sale since not hardship/I have other assets and 800 plus FICA...Can I let go to foreclosure? what happens besides a credit hit.? Do I get sued or do I have to pay difference in foreclosure?? what other problems do I face? Is this right way to go?
The lender will foreclose the property once you walkaway from it. A foreclosure will lower your credit score by 250 points. Apart from this, the lender will have the right to sue you for the deficient amount resulting from the sale of the property. If you are unable to pay the deficient amount, then the lender may place lien on your other property or he may garnish your wages.
Thanks. _________________ Good is the Enemy of Great.
ronh Guest
Posted: Fri Mar 27, 2009 12:26 am Post subject: As above....
thanks.....i thought this.......I am just trying to find a way to get out without being sued/paying the difference.....I can't short sale since I can't show financial need....so what else is there?? I guess I have to hold, eat the negative, and hope for the future recovery, right???
Deed in lieu could have been an option for you but in order to apply for that you'll have to inform the lender about your hardship. As you do not have any hardship, the lender would not be convinced to give you any option.
You can try to list the property in market and check if you can get buyers. If you get good buyers, you can sell it off. But once you sell off the property, you will have clear off the mortgage dues. _________________ Procrastination is the enemy of your financial sucess
rbh4evr
