 connie325
Joined: 02 Nov 2009
Posts: 1
1.47 Dollars($)
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 Posted: Mon Nov 02, 2009 7:44 pm Post subject: short sale, deed in lieu, or foreclosure |
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We bought this house for $116,900 in May 2006. It was hard for the realtor to come up with comps. He had to hop all over town to get comps. We paid too much for this house but coming from another part of the state, we didn't know any better.
We currently owe about $89,000 on it. I took my mother's inheritance to get the balance paid down to that amount.... money wasted.
A local realtor said he would list it for no more than $75,000 now.
The property tax has risen so badly that we can not see staying here any longer. Added to THAT is the fact my husband lost his job at the end of September. Two weeks before he lost his job, we closed on a house in another state (with virtually NO property tax).
Losing his job has escalated our intentions to move to the new house. We cannot make the mortgage payments on this original house anymore. We are missing this month's payment and will probably put the house up for sale soon. We know it won't sell, as there are tons of homes in this town that are for sale and not moving.
I sent a hardship letter to the lender, but they have really never responded. I am so afriad they can put a lien on the newly purchased home. My husband is 64 years old so his chances of finding another job are slim.
If they come after us for a deficiency, we will have no choice but to file bankruptcy.
Please advise.... We want to ask for a deed in lieu but the lender says we must have it on the market for 3 to 5 months first.
What ramifications (besides our credit score going to heck) will we face?[font=Verdana][/font] |
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Niicss
Joined: 03 Oct 2005
Posts: 3227
Location: New Jersey
509.11 Dollars($)
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| Posted: Tue Nov 03, 2009 2:12 am Post subject: |
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If the lender accepts your request for a deed in lieu of foreclosure, then you won't be responsible for the deficient amount resulting from the sale of the property. Thus, the lender would not place a lien on the new property if you cannot pay off the dues.
However, if the property is short sold or goes into a foreclosure, then the lender will not forgive the deficient balance. Thus, you would be responsible for deficient balance. If you cannot pay it off, then the lender may place a lien on your new property or can garnish your wages.
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Good is the Enemy of Great. |
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