Posted on: 19th Apr, 2008 12:28 pm
We have a home in Colorado which we refi'd in Jan 07. We made a move to IA due to family emergencies here. Have not been able to sell the house in Colo. Communicating with the mortgage co. (NationStar) since Dec 07, that we can no longer pay the bill, which is $2125/mo on a 10.01% ARM - but because we have borrowed from our credit cards (and our IRAs) to pay the mortgage monthly (and other bills) our credit debt is now up to $60k. We DO pay everything ontime and have a high credit rating, which we value and don't want to lose.
The house in Colo. costs us over $2600/mo (including taxes, ins, utilities, etc.) If we can just get the bank to take it back, we think we can catch up on the credit debt by increasing our income. But right now, we only have Soc. Security (about 1500/mo) and our outgo is $2600 on the Colo. house, $2200 on all other debt and bills.
We're afraid to let the Colo. house payments go "late" cause we'd lose our very manageable 3.99 and under rates on the credit debt... then we'd just have to do bankruptcy.
Trying to talk to the bank about "deed in lieu" - they want to talk "short sale" --- but have to have a "buyer" to talk that, and we don't have one.
Colo. house appraised in 07 for $325k. Amount owed now is $249,500. Currently listed at $274,500 - but we're telling people we'll take ANY offer! Have it listed with REMAX.
Main concern - how will a "Deed in Lieu" (if we can get N* to agree to it) effect our credit. Our current rating is above 740.
Should we talk to the credit card co's if we have to do a "deed in lieu" so they'd know what's happening? Do they care?
The house in Colo. costs us over $2600/mo (including taxes, ins, utilities, etc.) If we can just get the bank to take it back, we think we can catch up on the credit debt by increasing our income. But right now, we only have Soc. Security (about 1500/mo) and our outgo is $2600 on the Colo. house, $2200 on all other debt and bills.
We're afraid to let the Colo. house payments go "late" cause we'd lose our very manageable 3.99 and under rates on the credit debt... then we'd just have to do bankruptcy.
Trying to talk to the bank about "deed in lieu" - they want to talk "short sale" --- but have to have a "buyer" to talk that, and we don't have one.
Colo. house appraised in 07 for $325k. Amount owed now is $249,500. Currently listed at $274,500 - but we're telling people we'll take ANY offer! Have it listed with REMAX.
Main concern - how will a "Deed in Lieu" (if we can get N* to agree to it) effect our credit. Our current rating is above 740.
Should we talk to the credit card co's if we have to do a "deed in lieu" so they'd know what's happening? Do they care?
I am not sure on this but someone will be along to help you. I hope everything works out for you. I know times are tough and getting tougher but hang in there.
Sorry forgot to register. that last post was mine. Hope you ghet an answer soon.
Hi highvision,
Your credit card company needn't know about the deed-in-lieu. You aren't late on the cc payments, isn't it? It's only on the mortgage that you are trying to go late so that the lender suggests an alternative like short sale. But I don't think you need to be late to make the lender allow for short sale. It's just that you need to provide the lender with a hardship letter stating why you cannot follow the current repayment plan.
How's the market in your area? This will decide whether your house will sell at a reasonable price and you don't have to pay much of the deficiency.
"how will a Deed in Lieu effect our credit."
A deed in lieu has a negative impact on your credit and drops down your score by 250 points, so if you're going for it, your score is likely to be reduced to 490.
By the way, do you really wish to abandon the home or you'd like to save it? One option is filing chapter 13 if possible and keeping your home safe at the same time making payments on the dues and any unpaid debt.
Regards,
Jessica
Your credit card company needn't know about the deed-in-lieu. You aren't late on the cc payments, isn't it? It's only on the mortgage that you are trying to go late so that the lender suggests an alternative like short sale. But I don't think you need to be late to make the lender allow for short sale. It's just that you need to provide the lender with a hardship letter stating why you cannot follow the current repayment plan.
How's the market in your area? This will decide whether your house will sell at a reasonable price and you don't have to pay much of the deficiency.
"how will a Deed in Lieu effect our credit."
A deed in lieu has a negative impact on your credit and drops down your score by 250 points, so if you're going for it, your score is likely to be reduced to 490.
By the way, do you really wish to abandon the home or you'd like to save it? One option is filing chapter 13 if possible and keeping your home safe at the same time making payments on the dues and any unpaid debt.
Regards,
Jessica
