Posted on: 09th May, 2008 08:17 am
My Son MUST move next month due to he is Military. He has had his home on the market for over 6 months and NO offers. He has already signed a lease on a apartment at his new location. Once he moves,he will not be able to make the mortgage payment on the home...(well he can for about 2 months and exhaust his savings).
Two dozen or so people have looked at the home buy none have made a offer. The mortgage balance is 405K and the local agents are telling him the home is only worth 340-350K.......I`m not so sure if BofA would even consider a short sale.
So whats the next move????
I sugested to him to ask the bank for a forbearance until he can find a buyer. If not, I quess a Deed in Leiu is next????
His credit score is near 800 and never late on payments.
Renting it out will due no good, the average rent payment is around 1000.00 less than his mortgage payment,not including managment fees.
He is in a real crappy deal.....40 year loan....10 year fixed.....30 year ARM.......first ten years intres only..........Sheesh
Two dozen or so people have looked at the home buy none have made a offer. The mortgage balance is 405K and the local agents are telling him the home is only worth 340-350K.......I`m not so sure if BofA would even consider a short sale.
So whats the next move????
I sugested to him to ask the bank for a forbearance until he can find a buyer. If not, I quess a Deed in Leiu is next????
His credit score is near 800 and never late on payments.
Renting it out will due no good, the average rent payment is around 1000.00 less than his mortgage payment,not including managment fees.
He is in a real crappy deal.....40 year loan....10 year fixed.....30 year ARM.......first ten years intres only..........Sheesh
Hi Mrcj,
Welcome back to forums.
Since your son is moving out, therefore the lender is not likely to offer a forbearance. So, why don't you look for a tenant and offer the house on rent with a purchase option after a couple of years. Using the rent payments, you can at least pay for the loan. And if the rent payments aren't enough to cover the loan balance, you may request the lender for an alternative repayment plan. Try this out before you talk to th lender about a deed-in-lieu or short sale.
To know which is better - dil or short sale , refer to a previous discussion in this regard.
Thanks
Welcome back to forums.
Since your son is moving out, therefore the lender is not likely to offer a forbearance. So, why don't you look for a tenant and offer the house on rent with a purchase option after a couple of years. Using the rent payments, you can at least pay for the loan. And if the rent payments aren't enough to cover the loan balance, you may request the lender for an alternative repayment plan. Try this out before you talk to th lender about a deed-in-lieu or short sale.
To know which is better - dil or short sale , refer to a previous discussion in this regard.
Thanks
Hi Mrcj,
I think your son can request the lender for loan modification. With loan modification you will be offered an affordable rate and terms so that your can make the mortgage payments. You can then rent the home as jameshogg has also mentioned above.
Consult with the lender and see what he says about it.
Best of luck,
Larry
I think your son can request the lender for loan modification. With loan modification you will be offered an affordable rate and terms so that your can make the mortgage payments. You can then rent the home as jameshogg has also mentioned above.
Consult with the lender and see what he says about it.
Best of luck,
Larry
Hello MRCJ,
Perhaps your son should check into a law enacted in 1940 especially intended for active duty personnel called the Servicemembers Civil Releif Act (SCRA). For more information on SCRA follow this link (it may have to be copy & pasted into the address line of your browser) http://portal.hud.gov/portal/page?_pageid=33,717388&_dad=portal&_schema=PORTAL
This law applies to ALL consumer credit!
You might want to refer to this blog for more information
"http://activerain.com/blogsview/451362/They-Deserve-Better"
Wish your son luck,
Lynnette
[Link deactivated as per forum rules. Thanks.]
Perhaps your son should check into a law enacted in 1940 especially intended for active duty personnel called the Servicemembers Civil Releif Act (SCRA). For more information on SCRA follow this link (it may have to be copy & pasted into the address line of your browser) http://portal.hud.gov/portal/page?_pageid=33,717388&_dad=portal&_schema=PORTAL
This law applies to ALL consumer credit!
You might want to refer to this blog for more information
"http://activerain.com/blogsview/451362/They-Deserve-Better"
Wish your son luck,
Lynnette
[Link deactivated as per forum rules. Thanks.]
