Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Foreclosure - Options?

Posted on: 17th Oct, 2011 12:51 pm
My girlfriend and I have been together for 6 years and about 4 years ago we purchased a house together in IL.......both of our names are on the mortgage. Well, long story short we are separating and I am moving back to Dallas. The house has been on the market for about 4 months now but we've only had 2 showings. We owe $230k, are asking $215k, but it is only worth about $190k. Neither of us can afford the house on are own so I was kind of curious about my options. If we let it go into foreclosure can I buy another house right away if I take out a loan from my 401k for the down payment (talking about putting half down). Or what if we let it go to foreclosure, take out $50k from my 401k, borrow another $50k from friend/relative and outright purchase another home.....can the old lender come at me for anything?

I know I will get a lot of feedback about how I signed a contract and was ok with everything at the time. Or how my girlfriend and I shouldn't have made such a committment. I understand all of that and am just trying to make the best decision I can with my life.

Thanks!
Posted on: 17th Oct, 2011 08:50 pm
hello sjo,

*save up money to get current.
*establish a repayment plan or forbearance agreement with the current mortgage company.
*modify the terms of the existing loan through a mortgage modification, agreed upon between homeowners and lender.
*refinance through a traditional or hard money lender and obtain a foreclosure bailout loan, if there is enough equity to qualify.
*for fha loans, obtain a partial claim to get current. this will result in a lien being placed on the property for the amount of arrears, but reinstates the mortgage.
*sell to a private investor or friend/family member who will allow the homeowners to continue living in the property.
*file bankruptcy and include the house (chapter 13), and keep up with the court-ordered repayment plan.
*sell the property for less than what is owed through a short sale. tax liabilities may be a result of this option.
*sell the property outright for as much as possible, paying off the loan in full.
*offer the bank the deed to the house to avoid going through with the entire process with a deed in lieu of foreclosure.
*just move out, abandon the house, and begin the process of becoming financially stable after foreclosure.






:idea:
Posted on: 17th Oct, 2011 09:38 pm
Page loaded in 0.114 seconds.