Posted: Wed Oct 28, 2009 7:53 pm Post subject: What is the correct action I need to take
After much thought I have come to the point where I would like to let my home go. Now I must add, that I am not in any financial hardship and do not have problems paying my current mortgage. The reason I came to this decision was purely long term financial. I bought in 2004 (Phx, AZ) and now I facing an adjustment in my arm starting 10/2010. I am approximately $35K underneath on this house. (optimistic estimate)
I currently have excellent credit, 790, but it would be financially detrimental to my family if I continued to pay my mortgage and wait until I have enough equity to refi. My wife and I are ready to start a family and want a bigger long-term house. My plan was to purchase a new house prior to letting my current one go. I understand how this makes me look and I am somewhat humiliated that this is what I plan to do. But I have gotten to the point where I must think of my families best interest in the long term.
So my question is, do I just stop paying my mortgage on my current house (after we close on the new house), or do I mail in a deed-in-lieu along with the house keys? What is the best process?
Thank you for listening to my long rant, and I appreciate any guidance. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
If you want to go for a deed in lieu, then you will have to write a hardship letter to lender and apply for it. The lender will let you know whether or not he would accept your request of a deed in lieu of foreclosure.
If you simply walkaway from the property and stop paying the dues, the lender would foreclose it. After a foreclosure, you would be liable for paying the deficient amount resulting from the sale. However, the credit effects would be the same in both the cases. Your credit score would go down by 250 points.
However, I doubt whether or not you would get another mortgage for a different property. _________________ Procrastination is the enemy of your financial sucess
azdevil Guest
Posted: Thu Oct 29, 2009 9:14 am Post subject: AZ different laws
Arizona has Anit-deficiency laws that protect borrowers from deficient liabilities.
I ahve alreaady been qualified for another loan. I think the stipulation is that I aquire the new house prior to letting the first house go.
adonis
