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Promissory Note or Foreclosure

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MarkS Guest	Posted: Wed Nov 10, 2010 11:02 pm    Post subject: Promissory Note or Foreclosure Like 0 Dislike 0 After two years of trying to get out of a second home / investment mortgage, the bank has entertained the latest short sale offer on the property. I live in California and the house is in South Carolina. The PMI company is asking me to sign a promissory note for $40,000 interest free over 5 years. It is possible for me to pay but will be a financial struggle. Basically, I would like to look at all options here. If I don't accept the promissory, they won't approve the short sale. My options will be to foreclose or declare bankruptcy. I don't really have any assets to lose - I rent my apartment and lease my car. I have some stock and my 401K. I really just would like to know what the best route to take is here. Am I better off paying the $667 per month to the promissory note to help put this behind me and maybe look to renegotiate the payoff in the future? Or would it be better to forclose knowing that I don't have $40,000 in assets for them to take. I just got married and would like to purchase a home in the next few years, so credit score needs to factor in here as well. Sorry for the long question. I appreciate any help / advice that can be given. I think this site is great and has been helpful throughout this process. Mark
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Wed Nov 10, 2010 11:57 pm    Post subject: Like 0 Dislike 0 Hi MarkS, Welcome to mortgage fit, As you have said that you are young and recently married so you have long way to go and thus loosing credit is surely not affordable to you.... Short sale will only drop your score by 75-100 points as compared to DIL which costs you 250 points drop. But bankruptcy should always be kept a last resort because it hampers your credit in a long run... So as per my opinion you should agree with promissory note and continue with the deal......... Feel free to ask any further query if you have........ DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris

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