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jimsan
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Post subject: short sale to rent |
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| We just short-saled our rental (mistake adj loan, upside down), and are working with a debt settlement company on 70K revolving. After that, we will still be "insolvent" with 200K negative on primary home, 20K in taxes, 40K in other loans, and 150K inupcoming student loans. Should we short sale the residence, save 2K/mth by renting for three years, and pay down as much debt as possible? I still make good income, but we can show house payment ratio higher than 33% and no net worth. Thanks |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Post subject: |
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Hi jimsan!
Welcome to forums!
If you want to get rid of your principle residence, then you should first try for a deed in lieu of foreclosure. As it's your principle property, you will not be responsible for the deficient amount resulting from the sale of the property. On the other hand, if you go for a short sale, then you would be liable for paying the deficient amount.
Feel free to ask if you've further queries.
Sussane |
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sorwin
Guest
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Post subject: bankrupcy, foreclosure-guarrentor |
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| our bank said they would start foreclosure on 10-1. they said our options are to foreclose or do a deed in lieu. I don't know what would be better because my father is also on the home as a guarrentor. I want to protect him as much as I can. For my fathers protection is a deed in lieu better, foreclosure, or filing for bankrupcy-we already are in the process of filing. |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Post subject: |
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Hi sorwin!
Welcome to forums!
As far as the credit effect is concerned, both deed in lieu and foreclosure would reduce your score by 250 points and remain on your credit report for 7 years. But if you go for a deed in lieu of foreclosure, you won't be liable for the deficient amount resulting from the sale of the property. However, in case of a foreclosure, you would be responsible to pay it off to the lender.
I don't think it's a good option to file bankruptcy just because of the property. It will leave a bad mark on your credit report and will remain on it for the next 10 years.
Feel free to ask if you've further queries.
Sussane |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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Post subject: |
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i suspect the bankruptcy filing has to do with a lot more than simply the property in question.
Dad's other property really ought not to be in jeopardy, unless a judgment is entered at some point. Subsequent to that, a lender can place a lien on other properties.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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Vernon
Guest
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Post subject: deed in lieu of forclosure |
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| I have a property that I need to turn in in this manner. How do I get started? |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Post subject: |
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Hi Vernon!
Welcome to forums!
You can apply for a deed in lieu of foreclosure by writing a hardship letter to your lender. The lender will judge your financial situation depending upon the hardship letter and then let you know whether or not he would accept it. A deed in lieu of foreclosure is mainly accepted by the lender when you've defaulted your loan and are on the verge of foreclosure.
Feel free to ask if you've further queries.
Sussane |
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Ritacatl
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Post subject: noose around my neck |
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| I have a house in Atl. I could not find a job there and moved to Pa. I had my house in Atl on the market for about 1 yr but no buyers. I am still in Pa so needless to say, I'm paying a mortgage and a high rent. Anyway .... my house in Atl recently was flooded. I hired a cleaning crew to clean my house but b/c I did not have flood ins and at the time I had a renter in the house, I only qualify for a small business loan to pay the cleaners (about 4k). I just lost my job last wk so I have no choice but to move back to NY and move in with my parents. I hired a realtor to sell my house in Atl but she told me the neighborhood is destroyed. Even though my house is cleaned up and presentable the neighborhood is not so basically I don't have a chance to sell my house. SO .... I put 30k down on my house, spent another 12K remodeling, 12k last yr on payments, & another 4k to clean it. My mortgage payment is 800.00/mnth. I have about 700.00/mnth in student loans and about 6k in credit debt. I will get about 2k/mnth in UC. I feel that a deed-in-lieu is my only option right now to pull myself out of this whole. Are you sure handing over my keys will not affect my credit? My credit is messed up already b/c of this house payment, I need to get caught up on my student loan payments and I feel getting rid of this house will be my only option. |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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Post subject: |
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I think thats true
You cna go for deed in lieu ion this situation
Also check out and see if the goverment is offerting any relief for the the recent flood |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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Post subject: |
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of course a deed in lieu of foreclosure will impact your credit; any time a loan goes unpaid, that is going to negatively affect credit. it appears someone gave you bad information; or, alternatively, you misunderstood.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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j the fisherman
Guest
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Post subject: investment property |
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| heres a good one, i purchased two condos in arizona at the height of the bubble oops! now they are basically worthless both are rented but i am upside down 2k a month,with anti deficiancy in effect in arizona is my best option to just give up? with my income there is now way the lender will playball! |
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Niicss
Joined: 03 Oct 2005
Posts: 2617
Location: New Jersey
409.01 Dollars($)
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Post subject: |
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You can contact your lender and apply for a deed in lieu of foreclosure. If the lender accepts your request, then you won't have to pay the deficient amount. However, it would definitely affect your credit report. Your credit score would get lowered by 250 points.
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Good is the Enemy of Great. |
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Need help in Alabama
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Post subject: Deed in lieu |
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| I have a mortgage in Illinois and Alabama. I lost my job and cannot pay both. If I do a deed in lieu for the Illnois house, how will that affect my Alabama mortgage? can I lose my house in Alabama, car or motor cycle? I have no other assets. |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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Post subject: |
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Hi Guest,
If you sell off your property through a deed in lieu of foreclosure, then your property in Alabama will not be affected. The lender would forgive the deficient amount resulting from the deed in lieu sale. But, it would badly affect your credit report as it would lower your credit score by 250 points.
Thanks |
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