Posted on: 06th Sep, 2007 09:48 pm
Because it was close relatives whoi are renting, our negative was about $1,000 per month. We have had the proerty for 1 1/2 years now, and we want to let it go. Rather than just stopping paying the mortgage, can we approach the bank and ask them if we can surrender the property to them, have them put the property for sale and we will continue to give them the rent money monthly while the tenants are still living there? We really have to let go the property because of the negative amortization. Our balance had gone up to $560,000, and the comparables are in the area of $525,000. Also, come December, the real estate taxes will be due again. Please advise. THANK YOU.
Hi Eevillarin,
Welcome to the forum.
When you have defaulted on the loan, and do not want to keep the house further, then you can surrender the property to the bank and ask them to sell it. Till the property is sold, I guess there is no problem if the tenants stays there and you continue making the loan payments. But it is better, if you consult it with the bank.
Welcome to the forum.
When you have defaulted on the loan, and do not want to keep the house further, then you can surrender the property to the bank and ask them to sell it. Till the property is sold, I guess there is no problem if the tenants stays there and you continue making the loan payments. But it is better, if you consult it with the bank.
Welcome Eevilarin,
I think you want to sell the property prior to December or else property taxes will be due. Ok, you can request the bank to take over your property - that will be a deed-in-lieu of foreclosure then. But what concerns me is, your lender hasn't contacted you since the time you've been late on payments. Is that so? or did you inform them about financial problems? By now, they should have given you some other repayment plan that would have helped you pay off the loan with low monthly installments. And, what have you thought about the tenants? Are their period of stay about to end? I'm just asking because you've decided almost that you will be requesting the bank to take away your property.
Thanks.
I think you want to sell the property prior to December or else property taxes will be due. Ok, you can request the bank to take over your property - that will be a deed-in-lieu of foreclosure then. But what concerns me is, your lender hasn't contacted you since the time you've been late on payments. Is that so? or did you inform them about financial problems? By now, they should have given you some other repayment plan that would have helped you pay off the loan with low monthly installments. And, what have you thought about the tenants? Are their period of stay about to end? I'm just asking because you've decided almost that you will be requesting the bank to take away your property.
Thanks.
Thank you very much for your quick reply. My payments are current and has been so since the beginning. I am no longer interested in keeping the property because of its continuous declining value. I have not informed the bank of my serious financial situation. The tenants are on a month to month contract, and can stay indefinitely or can be given a 30-day notice to leave. Your hepl will be very much appreciated. God bless.
Ernie
Ernie
if you are unable to continue the payments then you may request the lender to take the home using deed in lieu of foreclosure. but you must also know that your credit will get hurt because of the dil.
but lender won't listen to your request for a dil as the loan is still current. after the loan is in default, lender would ask you to provide a hardship letter stating the reason why you want to give the house back using a dil and details of your monthly income and expenses. they will go through it and if real hardship exits, they would accept your request for a dil.
but lender won't listen to your request for a dil as the loan is still current. after the loan is in default, lender would ask you to provide a hardship letter stating the reason why you want to give the house back using a dil and details of your monthly income and expenses. they will go through it and if real hardship exits, they would accept your request for a dil.