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miami, fl
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0.10 Dollars($)
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 Posted: Sun Mar 30, 2008 3:01 pm Post subject: HELP |
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I am not sure what to do in this market. 3 years ago I purchase a home in a BOOMING market this an 80% first and a 20% second mortgage both with prepayment penalties for 2 years and variable interest. I was assured by the mortgage broker that in this martket 2 years from then I would be able to get 1 mortgage and possible some cash out because the market was growing fast. At the end of the 2 years the market had grown but because of the variable interest in order to keep the property I had to refi.
At the time of the refi the house had only grown enough that I could get the consolidated mortgage but I required PMI. Nearing the 1 year point of the new mortgage which is very difficult for me to manage. I discover that the house in now worth $100,000.00 less than what I owe. I am within 10 years of retirement with little or no savings. I believed this house would be my retirement investment. I am seriously considering
forclosure or a deed in lieu to get out of this SINKING SHIP and find another investment for my future. I am agonizing over this decision but I dont see any any future in this property.....
HELP
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 larry
Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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| Posted: Sun Mar 30, 2008 10:50 pm Post subject: |
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Hi,
Welcome to the forum.
I think you should not go for foreclosure. Foreclosure will not help you in any way. It will only affect your credit report hugely. If you cannot afford the monthly mortgage payments then talk to the lender and go for short sale or deed in lieu.
Check out "17 ways to protect yourself from the foreclosure trap" to know how can you save yourself from foreclosure at http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1451
Location: florida
243.97 Dollars($)
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| Posted: Mon Mar 31, 2008 5:01 am Post subject: RE: declining market - what to do with home? |
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Hi Miami,
I can very well understand your situation. Your home indeed has a very low value compared to what you owe and the problem is, lenders aren't doing 100% financing such that you'll cash out and get rid of the huge debt.
I wouldn't off-course suggest a foreclosure but a deed-in-lieu can be worth considering because you have little savings. What I mean is, lenders possibly won't ask for deficiency if it's a deed-in-lieu. But a foreclosure is simply going to ruin your credit much more than deed-in-lieu!
Know how a deed-in-lieu works before you negotiate with the lender. By the way, what is your lender suggesting? did you have a straight talk with him?
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Guest
0.10 Dollars($)
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| Posted: Mon Mar 31, 2008 1:23 pm Post subject: Thanks all |
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| This is exactly what I am thinking but these discission are very difficult to make on your own. Am I correct to believe the bank may not approve a deed in lieu ? |
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larry
Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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| Posted: Tue Apr 01, 2008 2:19 am Post subject: |
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Hi,
Welcome back,
First talk to the Back. If you don't request the bank for DIL then how can you know whether they will approve you for DIL or not. So request you back to approve you for DIL and update us whatever happens.
Best of luck,
Larry |
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