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bankruptcy? foreclosure? deed-in-lieu of forecloseure? help!

Posted on: 12th Mar, 2008 05:23 am
i purchased a home over 2 years ago without realtors. i was severly taken advantage of during the entire process. all of the contracts and even my appraisal was fraudulent. i purchased the home for 50,000 and there were over 120,000 of known undisclosed damages. i was told to just tear the home down and build a new one for what it would cost just to fix it. i couldnt find an attorney to take my case that i could afford even though every single one i talked to told me that i had a clear cut case. i have all the documents and papers in question. i made many improvements to the house, but it is still largely in disrepair. and i cannot afford to fix it. i was considering bankruptcy, but have outstanding credit and i cannot lose my vehicle. i have a great job and have relocated 4 hours away from the house. this house is a great burden on me and i just need out. i know that if i try and file a deed-in-lieu of forecloseure i will still owe a LOT to the bank. any advice at all?
You have come to the right place for advice, someone will be along soon to help you with these questions, are you considering suing the realty company for over inflating the worth of the house? Somebody needs to do this, they are getting away with way too much ripping people off in situations like this.
Posted on: 12th Mar, 2008 05:30 am
we didnt use a realty company. i kinda wish i had :
Posted on: 12th Mar, 2008 05:53 am
it was a private sale. i got an FHA loan, and they were supposed to be for the "buyer" so i called them and explained the situation to them and they told me the only way they would get involved and go after the people i bought the house off of is if it got taken to court. they would only appear in court to defend me, not before or after.
Posted on: 12th Mar, 2008 05:55 am
Posted on: 12th Mar, 2008 12:23 pm
what about a short sale? i was reading some other posts about them and it seems like it would work, but i am not sure that i fully understand the process. i did have one person intrested in the house and when i contacted my lender it was like pulling teeth to get any information at all. i would hate to have to explain my situation to them since just asking what my payoff amount was such a hassle. also i dont think i can file bankruptcy because i need to get a new house where i relocated to, and i cannot loose my vehicle (financed).
Posted on: 13th Mar, 2008 02:18 am
Hi Guest,

Welcome back.

In your situation, first of all you'll have to talk to the lender explaining why you cannot pay anymore and what option you've thought of. Also see what he has to suggest as workout option to avoid foreclosure.

I suggest you go for deed-in-lieu if your lender will not collect the deficiency, if any. By the way, what is your state of residence?

Just in case, you'd like to go through some of the possible workout options fitting into your situation, please have a look at the 17 ways to protect yourself from foreclosure . You'll also find some details about short sale there. This will help you to choose the right foreclosure prevention option.

Regards,

Jessica
Posted on: 14th Mar, 2008 01:53 am
Looks like you have gotten some great advice here, please keep the forum updated on what happens and what your decision is, your outcome will help others that come here in the future, they will read your post and get the information that they need. goodluck and keep us updated.
Posted on: 14th Mar, 2008 03:36 am
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