Posted on: 27th Jan, 2009 09:35 am
ok, here is my situation, i'ma single homeowner, whose girlfriend is pregnant, with our little girl due at the end of march. my house payments are $714 a month, and for some reason, they are going up to $730 starting feburary. i've lived in my home since 2006, i'm also divorced. i really like the house, and don't want to give it up, but will if it is best. i've tried, to no avail to sell it both with a realtor and fsbo, but no luck. i'm trying to refinance, with little luck on that end also. so which would be my best option, foreclosure or bankruptcy? if bankruptcy, which option there would be best for me?
thanks!
thanks!
Hi disciple,
If you are unable to pay the mortgage dues and if you are already late on your payments, you can then speak to your lender regarding short sale or deed in lieu. In both the processes, your property will be sold off by the lender to recover the debts. But in case of short sale your credit score will go down by 75-100 points and you will have to pay the deficient amount. In case of deed in lieu, the deficient amount will be forgiven but your credit score will go down by 250 points. These are better options than filing a bankruptcy or going for a foreclosure in my opinion.
Thanks,
Jerry
If you are unable to pay the mortgage dues and if you are already late on your payments, you can then speak to your lender regarding short sale or deed in lieu. In both the processes, your property will be sold off by the lender to recover the debts. But in case of short sale your credit score will go down by 75-100 points and you will have to pay the deficient amount. In case of deed in lieu, the deficient amount will be forgiven but your credit score will go down by 250 points. These are better options than filing a bankruptcy or going for a foreclosure in my opinion.
Thanks,
Jerry