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 rcox
Joined: 07 Jan 2008
Posts: 1
1.32 Dollars($)
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 Posted: Mon Jan 07, 2008 4:21 pm Post subject: wanting to know if i shoulg get out now.and the affects if i |
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| ive been late on 5 payments. my laon is higher than the home value by 30,000. and my payment went uo $700 dollars. i also have some upgrading to do but dont want to spend the money when its possible of losing the home. I was thinking about giving it to the bank and try again in ten years when im more stable and hopfully get a better loan out the gate. also my credit score is already trashed |
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larry
Joined: 27 Jun 2007
Posts: 3252
461.56 Dollars($)
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| Posted: Mon Jan 07, 2008 4:35 pm Post subject: |
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Hi Rcox,
Welcome to the forum.
You are already 5 months late on your payments. So if you can’t make the payments any further contact your lender ASAP and can try out deed in lieu as you have mentioned above. But the problem is the lenders don't always agree for DIL. So you should try first Short Sale. Short sale will hurt your credit less than DIL.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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jenkin7
Joined: 04 Jun 2007
Posts: 928
139.07 Dollars($)
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| Posted: Tue Jan 08, 2008 12:36 am Post subject: |
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Hello Rcox,
Was the monthly mortgage payments increased due to the adjustment of ARM?
If that is the case and you are willing to keep the house somehow, then you may try for FHA secure program. This will help you to refinance your present mortgage in to a FHA fixed rate mortgage and the interest rate might also be reasonable.
But this will require a good credit history as well as 6 months of regular on time payments prior to the rate adjustment. As you have already said that your credit is trashed so I'm not sure if you may qualify for this or not. But still you may give it a try if you are really interested to keep the property and avoid a foreclosure.
But if you want to get rid of it, then you should consult the lender immediately as you are already 5 months behind the regular payments.
If your lender is willing to accept a deed in lieu of foreclosure then you may do that. But lenders generally don't agree to a deed in lieu, as Larry has already mentioned, and they might insist you for a short sale.
Usually, a lender cannot seek a deficiency judgment after you sign a deed in lieu of foreclosure but he may do so if you go for a short sale to recover any unpaid mortgage balance left after the sale proceeds have been paid towards the loan. In that case, you shall still remain responsible to pay that off. |
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