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.

Compare Refinance Mortgage Quotes

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.


smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi sjo!

Welcome to forums!

If you let your property go into foreclosure, you won't be able to get a mortgage to buy a property immediately. You will have to wait for 3-4 years in order to [url= for a mortgage[/url] after foreclosure. However, if you wish, you can purchase a home outright using cash.

Feel free to ask if you've further queries.


Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:44 | Post subject:

sabrinatoss's picture
sabrinatoss | Joined: January 16, 2011 09:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.
*[url=]Refinance[/url] 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 [url=]deed in lieu of foreclosure[/url].
*Just move out, abandon the house, and begin the process of becoming financially stable after foreclosure.


Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:44 | Post subject:

Page loaded in 0.184 seconds.