Posted on: 13th Nov, 2007 08:45 am
My husband and I have separated. My finances, which were a mess before the separation due to a job loss, are now even worse, to the point where I will likely have to file bankruptcy. Neither of us can afford to keep the house, and i have already moved out. We just bought the house last year, so that with the falling market means we have no equity, not even enough to pay a realtor and break even. Last month paid was September's mortgage.
The lender is sending me the application for Deed in Lieu as well as short sale. In addition, I've placed ads to rent/lease purchase the house and may have a bite or two on that. Problem is, even if we got someone to start a lease in Dec, by then we'd be 2 months behind. Also, my husband has damaged the house in anger, and it would require a decent amount of effort & money to get move-in ready, money I obviously don't have.
Would it be worth it to try to rent/lease it, or should I just let the bank have it since the bankruptcy will ruin my credit anyway?
The lender is sending me the application for Deed in Lieu as well as short sale. In addition, I've placed ads to rent/lease purchase the house and may have a bite or two on that. Problem is, even if we got someone to start a lease in Dec, by then we'd be 2 months behind. Also, my husband has damaged the house in anger, and it would require a decent amount of effort & money to get move-in ready, money I obviously don't have.
Would it be worth it to try to rent/lease it, or should I just let the bank have it since the bankruptcy will ruin my credit anyway?
Hello Mdevanslaw,
If you get someone for the rent/ lease purchase from Dec then that would help you to make regular payments.
Talk to your lender about some alternative payment options by which you will be able to make up for the late payments.
If none of the plans are working then I think, it is better to go for a deed in lieu, if your lender is already willing to accept that. Deed in lieu has less negative impact on your credit than foreclosure or bankruptcy and the lender cannot seek a deficiency judgement in such cases.
If you get someone for the rent/ lease purchase from Dec then that would help you to make regular payments.
Talk to your lender about some alternative payment options by which you will be able to make up for the late payments.
If none of the plans are working then I think, it is better to go for a deed in lieu, if your lender is already willing to accept that. Deed in lieu has less negative impact on your credit than foreclosure or bankruptcy and the lender cannot seek a deficiency judgement in such cases.
hi dustirose,
welcome to this forum.
the lender is sending me the application for deed in lieu as well as short sale.
if the rent or lease helps you to make the monthly payments, then why would you go for the deed in lieu or short sale? you should talk to the lender and make him clear about your situation.
see only if you find you cannot make the monthly payments anyhow then you can go for the deed in lieu of foreclosure or short sale as it is far better than foreclosure and it has less affect on your credit.
feel free to ask if you have any further questions.
thanks,
larry
welcome to this forum.
the lender is sending me the application for deed in lieu as well as short sale.
if the rent or lease helps you to make the monthly payments, then why would you go for the deed in lieu or short sale? you should talk to the lender and make him clear about your situation.
see only if you find you cannot make the monthly payments anyhow then you can go for the deed in lieu of foreclosure or short sale as it is far better than foreclosure and it has less affect on your credit.
feel free to ask if you have any further questions.
thanks,
larry
Once your lender starts short sale or foreclosure proceedings they will mark your credit report with an M-9. Normally, they will mark an M-5 as voluntarily repossession, but have been marking it with an M-9 to show that it went into foreclosure.
Make sure to speak to the Loss&Mitigation department, and always ask them to send you things in writing on their letterhead. This way you can dispute any M-9's on your credit report.
Make sure to speak to the Loss&Mitigation department, and always ask them to send you things in writing on their letterhead. This way you can dispute any M-9's on your credit report.
