Posted: Fri Jun 01, 2007 9:38 am Post subject: 2nd home
My husband purchased a home in 2003 in Michigan before we got married. In 2004 we moved to North Carolina and have been unable to sell the house in MI. The market there has been consistently declining and is the #1 foreclosure market in the nation. We recently had an offer fall through due to the inspection discovering water damage to the foundation. The cost of maintaining two homes is having a negative effect on our finances and the stress of having a home in MI (especially during the Winter months) is too much to bear any longer. Recently my husband has been considering foreclosing. At this moment his credit rating is over 730 and I am really concerned about damaging effects this will have on his financial reputation; however we just can't handle the burden financially or emotionally any more. What are our options? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Fri Jun 01, 2007 10:07 am Post subject: RE:
Hi Andrea,
Welcome to MortgageFit.
Frankly speaking I dont think foreclosure is the best option your husband has. Although you have had a recent offer fall, but I would still suggest you to repair that house for once and then sell it. According to me thats a much much better option than going for a foreclosure.
Andrea, you can also talk with the mortgage company about a deed in lieu of foreclosure to give up the property back to mortgage company. It will also affect his score but would be somewhat better than foreclosure. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Hey, realality check! You’re or he is considering welshing on a financial obligation and coming to an Internet board to get absolution! I assume you know we live in a “grown up” world. Yes, a deed in lieu would avoid a judgment (although I think you might have a tax liability) but kiss the 700+ FICO goodbye.
My guess is that the lender would deep six the deed in lieu and go the foreclosure route (notwithstanding MI’s redemption) and attached any deficiency against you’re new home. Decisions have consequences and although I cannot condone you’re “it’s all about me” philosophy, consult an attorney to see how you might protect yourself. As best you can. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You have a number of options you could consider before foreclosure---here are just but a few:
a. Price the property more competitively---be willing to sell at a breakeven just to get from under it.
b. Rent it to a lease to own tenant.
c. Wholesale property to a investor.
jerry
