Posted: Tue Jul 22, 2008 5:57 pm Post subject: Short sale vs foreclosure or bankruptcy
We live in florida,
We have primary residence with 2 loans. (80/20)
house values have decreased by 40% and we can not make payments anymore after my arm adjusts.
Both my credit score and wife's is above 800. Have never missed a payment.
Would do foreclosure, but afraid of deficiency judgement.
What would be better bankruptcy, deed in lieu of foreclosure or short sale.
Also paying on 2 cars and want to keep them, and have $ 7,000 in credit card debt.
HELP.
Can I pay a lawyer to negotiate for me? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You should not get a deficiency judgment this or next year if you go into foreclose as that rule been suspended for now
Contact your lender and tell them your problem, perhaps you can negotiate something like a rate freeze
talk to an attorney if you have to _________________ Eugene Volovik
Home Loan Consultant
Countrywide
612-481-3127
Conventional, FHA and Commercial Lending in 48 states
You do not want to go into foreclosure by getting behind on your payments. Foreclosure, bankruptcy and deed in lieu, are a big hit on your credit score.
There are several workout plans available to you with your lender. You may ask for a loan modification. Be SURE to speak to someone in the Loss Mitigation Department at your mortgage company. Let them know your situation and be sure to mention that you need to be on a fixed rate instead of the ARM.
You may review a free step by step guide to mortgage problems at home-buddies.com. Just remember that your mortgage company does have options available to you, besides the options you listed. And you need to choose the option that is going to help protect your credit score.
Let us know if there is anything else we may help you with.
STOP THE PRESS…congratulations capablanca you should be one to the beneficiaries of the new legislation about to be singed into law by President Bush. Earlier today congress had a special session to approve foreclosure relief legislation.
This will allow you to refinance your home at 90% of its current appraised value. Since values have dropped by 40% in your area your lender would prefer the new loan rather than risk taking the home back. The law will not be affective till October so hang in there till then and stay in touch for updates on how you can refinance. _________________ Cliff Pape
Market Analyst
www.home-buddies.com
As far as I know, there is no free way to determine the appraised value of the property. Property appraisal will be done by an appraiser. _________________ Procrastination is the enemy of your financial sucess
evolovik26
