Posted on: 19th Dec, 2007 04:43 am
I'm going through a divorce and am planning to move out of the house. In the current market, the house will not sell. Additionally, the value of the house is such that I have no equity in the home. Is allowing Forclosure a good option?
Hi smith,
Now that you are going through a divorce, why do you want to move out? Is it a mutual one or does it involve court proceedings? I feel you should wait till the divorce decree is issued and the court reveals who will be getting the property. By the way, I guess you haven't claimed any interest in property, is it so? However, if you can start paying off the mortgage, gradually you will build up equity.
Even if the house is foreclosed, it might not sell at a price which can cover the loan balance because the market isn't fair enough now. So, I think you should go for a lease-purchase option wherein you rent out the property for a certain period of time and after that once the market improves, you can go for the sale if need be.
Take Care
Now that you are going through a divorce, why do you want to move out? Is it a mutual one or does it involve court proceedings? I feel you should wait till the divorce decree is issued and the court reveals who will be getting the property. By the way, I guess you haven't claimed any interest in property, is it so? However, if you can start paying off the mortgage, gradually you will build up equity.
Even if the house is foreclosed, it might not sell at a price which can cover the loan balance because the market isn't fair enough now. So, I think you should go for a lease-purchase option wherein you rent out the property for a certain period of time and after that once the market improves, you can go for the sale if need be.
Take Care
Hi ssmith,
I am sorry to hear that you are going through all this right now during the holiday season. Both Sara and jenkin7 are offering some very sound advice.
As this is a divorce and you have not indicated whether your spouse also is on title, I would recommend that you ask your attorney how the property will be handled during the divorce. Should it remain yours, solely, then you will need to decide what to do at that time.
Foreclosure really should be the last resort, if possible. If the home is too large or costly for you, definitely consider the lease purchase option Sara described. You could also consider taking in roommates to assist in paying the mortgage if you want to remain in the home. Should you choose to do that, please make sure you use caution when choosing roommates.
Should neither of those options really work for your situation, then contacting your current lender and attempting to arrange the deed in lieu would be a much better choice than foreclosure. As your attorney will already know your circumstances, you might see if they can assist you in negotiating with the lender.
Take care and I wish you the best. Please let us know if we can answer any other questions.
I am sorry to hear that you are going through all this right now during the holiday season. Both Sara and jenkin7 are offering some very sound advice.
As this is a divorce and you have not indicated whether your spouse also is on title, I would recommend that you ask your attorney how the property will be handled during the divorce. Should it remain yours, solely, then you will need to decide what to do at that time.
Foreclosure really should be the last resort, if possible. If the home is too large or costly for you, definitely consider the lease purchase option Sara described. You could also consider taking in roommates to assist in paying the mortgage if you want to remain in the home. Should you choose to do that, please make sure you use caution when choosing roommates.
Should neither of those options really work for your situation, then contacting your current lender and attempting to arrange the deed in lieu would be a much better choice than foreclosure. As your attorney will already know your circumstances, you might see if they can assist you in negotiating with the lender.
Take care and I wish you the best. Please let us know if we can answer any other questions.
as they mentioned, you want to avoid foreclosure as much as possible. also, waiting to see what the judge has to say is a good idea. foreclosures are viewed as worse than a bankruptsy. also, keep in mind, that you should keep making the payments on your mortgage. if you plan to purchase again in the future, this will help you out.
you can benefit from renting out the home. rates are also at an all time low, you may be able to refinance into a lower rate and payment that can help you out. as for value, i would suggest talking with a realtor to get a general idea of value. it is subjective.
take care!
you can benefit from renting out the home. rates are also at an all time low, you may be able to refinance into a lower rate and payment that can help you out. as for value, i would suggest talking with a realtor to get a general idea of value. it is subjective.
take care!
Hi smith,
Foreclosure should be your last option. Stephenie has rightly said that foreclosure is even worse than BK. So you should consult with you lender and see if you can go for DIL or short sale. These will have lesser negative effect on your credit report.
Thanks,
Larry
Foreclosure should be your last option. Stephenie has rightly said that foreclosure is even worse than BK. So you should consult with you lender and see if you can go for DIL or short sale. These will have lesser negative effect on your credit report.
Thanks,
Larry