Posted on: 20th May, 2010 06:17 am
I bought two lots in Myrtle Beach SC; one for $149,000 and the other for $159,000. The cost of the lots has dropped to about 1/3 of the original cost. I am thinking of just letting it go since it will take a long time for me to recover. I heard about the "walking away" how does that work and will I still be responsible for property taxes? My husband and I are retiring in a few months. Continuing to pay for these two lots will hurt us a lot. Our credit score right now is excellent and we are not concerned about the effect of walking away to our credit score....I need advise, please!
hi lucena!
welcome to forums!
if you walkaway from the property, then the lender would foreclose the property. you will be responsible for paying off the balance dues after the foreclosure. this will affect your credit score in a negative way and will reduce it by 250 points.
in my opinion, it would be a better option to contact your lender and apply for a deed in lieu of foreclosure. you won't be liable for the deficient balance in this case and would be able to get rid of the property.
feel free to ask if you've further queries.
sussane
welcome to forums!
if you walkaway from the property, then the lender would foreclose the property. you will be responsible for paying off the balance dues after the foreclosure. this will affect your credit score in a negative way and will reduce it by 250 points.
in my opinion, it would be a better option to contact your lender and apply for a deed in lieu of foreclosure. you won't be liable for the deficient balance in this case and would be able to get rid of the property.
feel free to ask if you've further queries.
sussane
Sussane,
thank you so much for your response. I'm not familia with a deed in lieu; can uyou explain what it is, please.
Thanks!
thank you so much for your response. I'm not familia with a deed in lieu; can uyou explain what it is, please.
Thanks!
Hi Lucena,
Deed in lieu of foreclosure is one of the ways to get rid of the property and save it from foreclosure. You can check out the given page in order to know about deed in lieu of foreclosure:
http://www.mortgagefit.com/deed-lieu.html
Thanks
Deed in lieu of foreclosure is one of the ways to get rid of the property and save it from foreclosure. You can check out the given page in order to know about deed in lieu of foreclosure:
http://www.mortgagefit.com/deed-lieu.html
Thanks
Thank you so much Jamesqq!!!
You are most welcome! :)
I am in the same boat with a lot in NMB. I have a balloon of $150k due in two weeks for a lot now worth half that.
Interested in what you end up doing.
Wells Fargo wants about half the loan paid before they consider any additional funding. I don't see that as viable.
Interested in what you end up doing.
Wells Fargo wants about half the loan paid before they consider any additional funding. I don't see that as viable.
My husband and I are planning on going to SC to get a real estate lawyer to help us with the deed in lieu. I also plan on calling my bank to see if they're receptive to deed in leiu of foreclosure. I'll let you know the result.
Just got back from SC and we decided to just walk away from our lot loan since the bank does not accept deed in leiu of foreclosure. Either way, if the lender sells the lot for less than the amount of our loan, we'd still be responsible for the difference...we are in a bad situation right now. We don't want to walk away, but we are retiring and cannot afford to keep the lots....does anybody have any other recommendations?
Hi Lucena!
Welcome to forums!
You can short sale of the property by applying for the same to the lender. This will lower your score by 80-100 points but you would be liable for paying the balance dues resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can short sale of the property by applying for the same to the lender. This will lower your score by 80-100 points but you would be liable for paying the balance dues resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane