HAVE TO MOVE. LOAN UPSIDE DOWN

Guest 0.10 Dollars($)

I bought my house in february of 2006, since then the value has decreased. I am getting married next september and have to move. If i sell right now i will be upside down on the loan. I cant afford to pay off the difference and buy another home. I havent been late on a payment yet. What are my best options? Should i let them foreclose, dead in leiu? Will the negotiate with me and take a short sale? I am so confused and it is really putting additional stress on me.

[Edited as per forum rules]

Guest 0.10 Dollars($)

Hello,

Best thing will be if you consult with your lender and try out any alternative options.

If you go for deed in lieu, you may not need to pay the deficiency judgment. But it will affect your credit report.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi PLATINUMDAVE,

Welcome to this forum,

First of all try to contact with your lender and explain your problem regarding your mortgage payments. If you delay or do not contact with him, ultimately you will create problem for yourself. Lenders do not want foreclosure; so he will surely help you with some alternative plans like mortgage modification or mortgage forbearance.

If you think that you cannot even afford these problems, then only you can think about short sale or deed in lieu of foreclosure.

I will suggest you to opt short sale as it will affect you credit score less than DIL or foreclosure and you can even qualify for another mortgage after 18 months of the short sale. But you may have to pay the deficiency judgment.

Jonny is right that if you go for DIL, you may need not to pay the deficiency judgment. But lenders generally do not agree for DIL and DIL also affects your credit score more than short sale.

Hope that will help you. Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest 0.10 Dollars($)

HOW CAN I DO THIS ALL AND STILL GET ANOTHER MORTGAGE RIGHT AWAY? I STILL NEED TO MOVE. WILL THEY ALLOW ME TO CARRY THE BALANCE TO MY NEW MORTGAGE? I OBVIOUSLY DONT WANT TO HURT MY CREDIT SCORE, AND I AM NOT TRYING TO RUN FROM MY OBLIGATIONS, I HAVE PAID REGULARLY.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi PLATINUMDAVE,

If you have regularly paid your mortgage, then why are you thinking about selling the house or foreclosure?

Consult with your lender and try out some alternative plans like mortgage modification or mortgage forbearance. So do not delay and talk to you lender. He will surely help you because I have also previously said you that no lenders want foreclosure or DIL.

Consult with your lender and let us know what happens.

Best of luck,
Larry

Guest 0.10 Dollars($)

I HAVE TO MOVE BECAUSE I AM GETTING MARRIED AND MY FUTURE WIFE'S JOB IS 1 1/2 HOURS AWAY. MY CURRENT LOCATION IS NOT VIABLE FOR US.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi PLATINUMDAVE,

Then it is completely your choice! In that situation I will suggest you to go for Short sale. The lender will at least see that you have tried to pay your mortgage by selling the house and it will affect you credit report less. So consult with your lender and see what happens.

Best of luck,
Larry

gmakerley · Posted: Mon Dec 10, 2007 2:27 pm Post subject:

can you rent the home for a reasonable amount of money?
but, definitely consult with the lender and see what arrangements can be made; the possibility of renegotiating the rate/payment, etc. would help. there exists the possibility that you would qualify for a new mortgage while carrying your existing mortgage as well. this is worth investigating further.

by all means, dont just let them foreclose. never is the only time that makes sense.

evolovik26 · Posted: Tue Dec 11, 2007 7:27 am Post subject:

Basically if you want your credit unhurt you have to keep this house and keep making payments on it or you have t repay the loan.
Sit down with your future wife and figure out how you guys want to do this and what is more important. Maybee she can get a job closer to your home. Maybee you can rent this place out. Maybee you can come up with the shortage.

gmakerley · Posted: Mon Dec 17, 2007 9:33 am Post subject:

eugene...you need an editor! sorry for being so bold about this, but the word "maybe" is spelled "maybe."
please delete the extra E.

evolovik26 · Posted: Tue Dec 18, 2007 7:11 am Post subject:

sorry about my bad spelling but im not trying to win a contest. I could write the answer in Russian for you as that is my first language. Whould that be better?

brad · Posted: Wed Dec 19, 2007 6:40 am Post subject:

I agree with George for the most part. I think if you can rent the property out and still afford the payments that will be your best option. If you can hold on to it for another year or two the market could turn around and allow you to sell the property and break even.

Your only other option would be a short sale but you are going to hurt your credit because most lenders will not begin negotiations on a short sale unless you are 90+ past due.

scherzeroni · Joined: 05 Jan 2008 Posts: 51 18.77 Dollars($)

You can look into a deed in leiu of foreclosure or maybe even a short sale. A short sale is when the lender is willing to accept less than your balance because the home is simply not worth more than what you are sellling it for. Call your lender and ask for the foreclosure department to go over these options.

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