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bgina772 · Joined: 22 Sep 2009 Posts: 3 1.91 Dollars($)

I am currant on mortgage at this time. Because of death of a love one. I am not able to keep payments up. My safety net is low. I'm looking at 2 months to go.

Last week I talked to a few realtors. Bad news. only 2 out of 6 was willing to try and sell the house. But most likely I would be looking at a short sale. Houses in the area Denver CO. are selling for less then my mortgage. Only owe 136,992,00. Houses like mine are selling as low as 120,000. Some in better shape then mine still that low.

I was thinking of taking on a partner. Just giving them 50/50 split if they take over and keep the mortgage currant, make up grades and repairs. In 3 to 5 years selling. Give the option to the partner ship if they wanted to keep the house. They could buy me out. Even with the risk of the partner failing to keep their end of the deal. Bank of America hold the mortgage. Not much they can do for me. What do you think?

Niicss · Posted: Tue Sep 22, 2009 2:55 am Post subject:

As you've yourself mentioned that there's a risk of default if you are dealing with a partner, it's better not to go for that option. If you want to save the property, check out the option of loan modification. With the help of this option, you would get a reduced interest rate and thus paying off the mortgage dues would be easier for you.

However, if you want to sell off the property, then you might check out the option of deed in lieu of foreclosure. Once you surrender the property to the lender, he will sell it off and try to recover his dues. In most cases, the lender is unable to recover the full amount and thus, a deficient amount remains. You will not be liable to pay that deficient amount as the lender would forgive it. Just remember that if you go for a deed in lieu, it would remain on your credit report for 7 years and would lower your score by 250 points.

gmakerley · Posted: Tue Sep 22, 2009 9:04 am Post subject:

i think a partner would be a bad move - particularly with a 50/50 split. if you're having so much trouble finding a realtor to work with, it appears that a deed in lieu might work out better for you. you'll need to have a serious discussion with your lender about this to make a determination of what's best.

bgina772 · Joined: 22 Sep 2009 Posts: 3 1.91 Dollars($)

I have been reading a lot last night after posting. About the deed in lieu.
That don't sound like a great option. If the house sells for less then I still owe. I could be paying the difference. Loosing my love one, I make 507.00 SSDI income. Mortgage of 1,016.82

That's why I know Bank of America won't do a mod.loan with me. They can't drop it low enough for me to afford this.

I do know I risk the bank calling in the loan if they find out about doing this partner thing. It would be set up like a renter. I was going to hold the title. So I won't have to take them to foreclosure to get the house back should they fail to keep their end of the deal. It's in the agreement that they forthfit all money paid into this deal if they should fail to keep payments up. Just like I walk away loosing my money if I fail to hold up to my agreement with the bank. I tired to see if this was assumable loan. No it's not.

bgina772 · Joined: 22 Sep 2009 Posts: 3 1.91 Dollars($)

I'm just checking all options. I keep talking and asking everyone who might know. It would help if you explaine more of why you think the deed in lieu. Even when I read about foreclosure. It hurts the creidt both ways. for about the same amount of time

Posted: Tue Sep 22, 2009 10:19 am Post subject:

yes, the deed in lieu affects credit, as would the foreclosure.

banks often look favorably upon a deed in lieu because it allows them to avoid all the costs and the expense of time while waiting on a foreclosure action. it's faster, easier and less strenuous than a foreclosure action. given that, i'd have to believe it gives a borrower a chance to move on more rapidly and with far less stress than what the foreclosure would do.

in either case, these are last-gasp sorts of solutions. i'm just skeptical about bringing in a partner and i suppose that's just personal preference and the reluctance i'd have at sharing equally with such a partner.

if you are in a situation (physically, with the house) that you prefer over other alternatives, then finding someone to assist you so that you can remain there is certainly a viable alternative. obviously, it's going to have to be someone you will have to have faith in to perform as you need. those people are few and far between, though.

gmakerley · Posted: Tue Sep 22, 2009 10:20 am Post subject:

yes, that was me just above.

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a bad situation