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stuffz411 · Joined: 17 Apr 2009 Posts: 1 1.49 Dollars($)

Hi. My loan is about to end in a year and my lender told us we do not qualify for the new program as our loan is more than 105% of the market value. I don't want to foreclosure and I don't want my house. Any suggestions on getting rid of the loan or what should I do?

savior70 · Posted: Fri Apr 24, 2009 6:09 am Post subject:

Hi

If you don't want your house, you can go for a short sale or can do a deed in lieu of foreclosure. Both will affect your credit, but not as much as a regular foreclosure does. You can talk with the loss mitigation dept. and check out these options.

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

What do you mean by your loan is ending in an year?

Are you saying your loan is resetting?

You need to show some finacial hardship for your lender to help you to refinance or wait for the rates to reset. The rates are not going to go up drastically in this market situation.

Guest

5-year loan is resetting...sorry I'm not so good with mortgage terminology.

I need to move (25 miles to be closer to work which is a 1 hr drive) so is it worth keeping the house and rent out if my monthly payment is higher than the average rent AND have to deal with possible tenant issues? It'll come better favorable in the long term but in the short term I have to deal with the unpredictable hassles and problems. I'm not in an extreme financial hardship yet but I am in a difficult financial dilemna being stucked with this house. Just wish I can start all over again! It seems as if the gov't is helping the banks but they're not helping homeowners like my situation unless I damage my credit first! Any suggestions are appreciated! Thanks!

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

It is hard to get the loan refinaced if you cannot show any hardhship.

best option would be to stay where you are or try to rent it so after the market receovers you can refinace

eric1 · Posted: Fri May 01, 2009 5:24 pm Post subject:

At this point I would just wait until the end of the year. Nobody knows where rates will be then. Your adjustment could be in your favor (lower rate). In addition, it is possible that your home value could increase by the time the rate adjusts. So, do not be so quick to dump the home.

Guest

We need to move in beginning of 2010 and I think it'll be years (at least 3 years) before it'll start peaking up and it'll be a very slow rise. That is why I'm brainstorming for best options now. I'm thinking by the time the market is back to somewhat normall it'll be another 5 years which if my credit score drops it'll give me enough time to build it up and even have more money to put down. Right now mortgage payment is higher than the average rent, location where I live is not close to work, my house is small for a family of 5 and have been ready to move for the past year, HOA fees is outrageous (which I don't understand why they shouldn't adjust to influnctuations of the Housing market) and property taxes are killing me! Gosh so much to think about...

smithsussane · Posted: Mon May 04, 2009 12:33 am Post subject:

Hi guest!

Welcome to forums!

Are you planning to sell off the property? You can list the property in the market and check out if you can get buyers for it or not.

If you're delinquent on your mortgage payments and want to move away from the property, then you can apply for a deed in lieu. This will help you in selling off the property and you will not be liable for the deficient amount. However, you should note that a deed in lieu will lower your credit score by 250 points.

Sussane

eric1 · Posted: Mon May 04, 2009 4:30 am Post subject:

I would definately consider renting the home. Tenant issues are not as bad as you think. Plus if you do a good job screening, then you can eliminate problem tenants. You mentioned HOA which means you live in a condo? If so, much of the maintenance problems would be handled by the association anyway.

JKennedySLG · Posted: Mon May 04, 2009 10:00 pm Post subject:

If you have a few years to build your credit back up, you should think about the short sale option. It will affect your credit, so the time in between your next purchase must be used wisely to establish a good credit score. I hope this helps...

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Good Suggestion Kennedy.

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