What kind of professional do I talk to?

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OK. I've posted before, but here's the short story again:

I own a house in Michigan. I live in Kentucky.

I have about 140,000 left on the mortgage, and the house is worth about 125,000 if I'm lucky.

So far, I've had no trouble paying the mortgage, because I've had a renter in there for two years. However, I just got a letter saying that she can't pay any more. Now my savings are being drained every month.

I'm not in danger of missing any payments, but I want to just GET RID OF THE HOUSE. I don't want to rent it to anyone new. I'm getting ulcers and the repair costs and property taxes are about $6000 per year.

What kind of professional can I talk to about how to GET RID OF THE HOUSE? A real estate lawyer? A financial planner? I'm tired of people saying they can't help me because I haven't missed any payments. I want some help BEFORE I lose my life savings.

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To clarify:
I'm looking for help on things like:
- Can I do a short sale? How will that affect my future borrowing?

- Should I buy a house here in Kentucky and THEN do a short sale? If so, could they go after my KY house?

- Should/Can I get an unsecured personal loan for like $25,000, then sell the house and pay the difference using the personal loan? Would it be worth it for me in the long run to spend the $25,000, or just take the hit and do a short sale?

- What can I do with the current renter situation? According to our lease agreement, I am allowed to kick her out immediately and the rent for the remainder of the lease in its entirety is due to me. Should I sue? What if she doesn't have the money?

Thanks to anyone who can help.

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One other option: My mortgage was an 80/20 loan. If I sell the house, I'm assuming both mortgages have to be paid off, correct?

OR - could I sell the house and pay off the "80%" part, and just continue to pay off the "20%" part over time?

Niicss · Posted: Mon Jan 05, 2009 3:46 am Post subject:

Hi Guest,

It is correct that lenders will not help you as you have not defaulted on the loan payments. Options of short sale, deed in lieu or loan modification are available to people who have at least defaulted the payments for a month. You can speak to a real estate agent and try to list the property in the market. Check out if you can get buyers for the property. But remember that if you sell off the property your loan may become due and you will have to pay it off immediately.

Thanks.

Guest 0.10 Dollars($)

You CAN, in fact, do a short sale without missing any payments....I do them all the time (I run a Loss Mitigation Company that does SS's FOR Realtors. The key is a good hardship letter and working with someone that FULLY UNDERSTANDS Short Sales from the lender's position.

radamczy · Joined: 04 Dec 2008 Posts: 3 2.59 Dollars($)

Aaron,
Does "moving to another state" count as a hardship? As an update of my problem here, I just got a competetive market analysis for the house. It is worth $70,000. So I am upside-down on this house by about $80,000. Even though I can afford the payments, I want out. I don't want the house, and I DEFINITELY don't want the $80,000 of debt hanging over my head. Even if my credit score gets blown away by a short sale, I don't care...bad credit will never cost me $80,000!

jameshogg · Posted: Mon Jan 12, 2009 11:53 pm Post subject:

Hi radamczy,

I don't think "moving to another state" will be counted as a hardship. However, you will have to speak to the lender and negotiate with him to check if he agrees for a deed in lieu foreclosure in your case.

Thanks

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