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connectstar · Joined: 12 Aug 2009 Posts: 3 2.81 Dollars($)

Hello,

My wife and I bought a home in 2008 thinking we were buying at the bottom of the market. We bought the house a little ways outside of the city because at the time that was all we could afford and we paid 130k for the home. Since then I got a new job that now requires me to drive for 2 hours from home to work which is killing us. We really need to get out this house and move closer to my job and the city but would likely have to sell for 100k to be able to sell. I am employed, have excellent credit, and never missed a payment... is there any way out of this without getting stuck with a 30k credit card bill?

Thank You! Tim

jenkin7 · Posted: Thu Aug 13, 2009 2:06 am Post subject:

Hi Tim,

If your job requires you to relocate to the different place, you will have to. In this market, a job is a top priority. You have two likely options in this situation. You can either go for a short sale or do a deed in lieu of foreclosure. Both of this will affect your credit.

While a short sale affects your credit by approximately 75-100 points, a DIL affects your credit by around 200-250 points. You will also be liable to pay off the deficiency as your house is underwater. Now, in order to protect your credit, you need to pay the mortgage in full. To do so, you need to collect the $30k money from some source, be it credit card debt or some other loan. The other option would be to rent out this property and use the rental income to make the mortgage payments.

dmcgowan · Joined: 08 Jul 2009 Posts: 6 2.68 Dollars($)

that is crazy, going 30K in debt on a credit card to save your credit. Plus, not all states have a deficiency law. if yours does not I would mail them the keys and rebuild your credit

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