Need advice

Guest 0.10 Dollars($)

I am going through a divorce. I have moved out of the house because my husband is abusive and he claims he has no where to live. We are still paying the mortgage, but in Sept I will be relocating out of state and moving into an apartment. He cannot afford the house on his own. The house is currently up for sale, but we have not had any activity. The Florida housing market is in the dumps. I don't want to foreclose and will not be able to afford the payments and do not want to file bankruptcy. I have heard of died-in-lieu of foreclosure and short sales. What are my options?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Sonthomas, as you will be relocating to a different state, keeping the house will not be of much use for you. Your husband is not in a position to continue the mortgage. In this situation you need to talk with the mortgage company about the options which are open for you. A deed in lieu of foreclosure or short sale, both are possible but it depends on the mortgage company. They can accept any of these two options.

Miller

colin · Posted: Fri Jul 06, 2007 2:02 pm Post subject:

Hi Sonthomas,

Welcome to Mortgagefit forum.

Foreclosure as well as bankruptcy will have bad affect on your credit score. You have rightly decided not to select any of the two options.

It can also be possible that in divorce judgment court will give the house to your husband plus the responsibility of continuing the mortgage payments by refinancing the loan in his name. You may very well wait for the court judgment.

BTW, have you any idea how many months left before the divorce judgment will be finalized? If it is going to be within the next two months then you should wait to know who is given the house in the judgment and plan according to it.

Colin

Guest 0.10 Dollars($)

Talk with the lender about deed in lieu. If the lender accepts a dil then you will not have the responsibility to continue the mortgage.

But dil will bring your as well as your husband's credit score down and affect possibility to borrow funds in the future. As it stands now you don't have many options left apart from a dil or short sale. If the house could be sold then it would have been better but as you are saying the market conditions are causing problems.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Sonthomas,

As you are going through a divorce process, it would be wise to wait for the judgment of the court. Only then can you decide what has to be done with the house. If you decide for a deed-in lieu of foreclosure, then, that would affect your credit score and you would then have problem in borrowing money from lenders. I would suggest that you have a talk with the loan company before and then discuss for probable options.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Sonthomas,

When you cannot afford to make the mortgage payments, and are not willing to go for bankruptcy or foreclosure, you can opt for a short sale or a deed in lieu of foreclosure. If you go for a short sale, you will sell the house at a lesser amount than the total outstanding balance on the loan. But with a short sale, there is a chance for the lender to claim the fee for the deficiency judgment (difference between the amount owed and the amount paid).

And now when you are moving to another state altogether, you can also give your property to the lender through a deed in lieu of foreclosure. With this option, you can at least avoid the cost of foreclosure and your debt may also be forgiven. Compared to a foreclosure, a deed in lieu has a less negative impact on your credit report. Now you can ask your lender as he will allow you to go with the better option suiting your financial condition.

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