Posted: Wed Sep 24, 2008 8:10 pm Post subject: upside down in mortgage
My ex and I bought a place 3 years ago. Prices kept going up for a while, but then you know. When we split there was more debt the equity, but I maned up and took the burden. Now the numbers:
Bought at 211
still owe 180
identical unit sold for 145 a week ago.
I can make the payments, but why should I? credit? who cares.. how come people can get out with a short sale, but I can't short sale to myself and cut down 35K or something?
I completely understand your situation. But you should remember that you cannot do a short sale or a deed in lieu to yourself. Short sale or deed in lieu will have to done to the lender. You will have to transfer the property to the lender who will offer you a note stating that the your loan has been paid. Then the lender will sell the property in the property in the market and try to recover the money. If the markets are down then there will a deficiency in the money which the lenders generally forgive in case of deed in lieu. However, you will have to give a tax on the forgiven amount as the tax department considers this as an income. In case of short sale, however, you will have to pay the deficient amount.
I would suggest that you should keep on making the payments so that your credit score is not affected.
Posted: Thu Sep 25, 2008 1:52 am Post subject: Upside down? manitou
Hi manitou
Welcome to the forums your title says you are upside down. Which make me ask are there any other outstanding issues in this situation? You have options like short sale, deed in lieu- to get these services you may need 3rd party representation.
[Email address and promotional text deleted as per forum rules. Thanks.]
It looks like the house won't sell off for $180 K considering the fact that a nearby property has recently sold off at $145K. Are you on the house and mortgage along with your spouse? Can you tell me more about your situation and the short sale stuff that you've spoken of. Are you really interested in short sale?
Spose is on the first mort. but not the second (got her name off easy on the second, but the first wanted me to jump through hoops and give them $100 processing fee.. so screw it.. he name can stay on the debt until she wants to go about getting it off.. the deed is in my name alone done by the courts).
I've already "lost" 85K if you figure the 20 I put into it.. the 30 I've paid down the mortgages.. and the fact that I'm still upside down in it..(180 vs 145). There just doesn't seem to be any point to keep going other then planning for liek 10 years down the road. The pres talks about relief for those forclosing.. where's my relief? I don't get any help because I budget myself enough to make the payments.. just pisses me off. (I guess I'm just venting unless someone knows of a way to get the bank to say.."nah.. that's too much money you owe us.. how bout we take 30 grand off the mort for being a good guy and paying us on time or early"'
I understand your problem. Its a real hard time that you are facing. I would suggest you not to go for a foreclosure. You can try for deed-in-lieu or short sale. deed-in-lieu, you will have to give the property back to and the lender marks you a note saying that the loan is paid. The lenders sells the property in the market and tries to recover the money. In most deed in lieu cases, there is a deficiency which the lender forgives. However, the tax department considers this as an income and will charge you on that. If you go in for short sale, you will have to pay the deficiency.
Posted: Mon Oct 06, 2008 5:37 am Post subject: Can I refi my Upside down mortgage now with this bail Out?
I owe on my home $336,000 on my 1st & $42,000 on my 2nd. House is worth now under $300,000. Last appraisal 2 yrs ago was at $460,000. WHAT CAN I DO? I hear some banks my appraise your home & refi you based on that & write off the balance. I'm stuck in my home.
Posted: Wed Oct 08, 2008 1:39 pm Post subject: See message re: HOPE for Homeowners posted today!
Go to my message posted today and you will find another option other than foreclosure, deed in lieu, and short sale - this is GOVERNMENT backed and just came out on 10/1/08. See my post today 10/8/08.
Michele
Can you explain your situation in details? This community has a lot of members who may help you by providing you solution. Moreover the community has a number of experts who can assist you in dealing with the situation.
Posted: Thu Dec 25, 2008 5:45 pm Post subject: New Housing Proposal for Upside-Down Homeowners
I am writing you to tell you about a new housing proposal in which financial institutions develop a program that allows upside-down homeowners with an established good loan history and ability to pay to trade-up to a lender-owned home with a current market value equal to their existing home loan. This may have the effect of resolving a large part of the housing crisis. As you know, many people are "upside-down" on their home mortgages (owe more than their house is worth in today's market) and recently the news has been stating that these people may comprise the next round of foreclosures. If we (collectively) can send this proposal to policy makers in the housing industry and get them to take a serious look at it, responsible, low-risk homeowners who have been victims of this market could help stop the flood of foreclosures that is causing this crisis and can once again have a mortgage that is equal to their home. It is win-win for both sides. This is urgent.
I am a semi-retired real estate broker, but this is not any kind of solitation for business or money. I am a concerned citizen and I believe with all my heart that this can work. I put this proposal on my website because it was the most expedient way for me to get the information "out there."
This proposal can be found at "http://www.onereallygoodagent.com/proposal.htm".
[Link deactivated and promotional text deleted as per forum rules. Thanks.]
smithsussane
