Posted on: 22nd Sep, 2008 06:55 pm
hello. i live in california. i currently live in a house that i bought two years ago with an arm loan and just refinance a year ago with an 30 year fixed loan. currently i owe more than the house is worth by more than a 150k. i want to get out of this house and i am not sure what my option are. i want to foreclose but i am worried about my other two houses. can i foreclose this house without affecting my other properties or will they also be taken away or have lien put on them. is there any other option for me? thank you for your help.
hi skithuy!
welcome to the forums!
as far as i know, your other two properties will not be affected by the foreclosure. however, you should remember that the foreclosure will badly affect your credit. there are two other options which you can try. one is deed in lieu and the other one is short sale. by signing deed in lieu, you will give away the property back to your lender and the lender gives you a note saying that the mortgage is paid. the lender then sells the property in the market to get back his payments. while selling this property, the lender may get a lower price than the debt. normally, the lenders forgive the deficient amount which is considered as an income by the tax department.
short sale is another option to avoid foreclosure. in this case the lender agrees to discount a loan balance if the debtor is unable to pay. the bank's loss mitigation department negotiates with the borrower and comes up easy terms and conditions through which the debtor can pay back the loan. these two plans will affect your credit less than a foreclosure.
feel free to ask if you have further queries.
sussane.
welcome to the forums!
as far as i know, your other two properties will not be affected by the foreclosure. however, you should remember that the foreclosure will badly affect your credit. there are two other options which you can try. one is deed in lieu and the other one is short sale. by signing deed in lieu, you will give away the property back to your lender and the lender gives you a note saying that the mortgage is paid. the lender then sells the property in the market to get back his payments. while selling this property, the lender may get a lower price than the debt. normally, the lenders forgive the deficient amount which is considered as an income by the tax department.
short sale is another option to avoid foreclosure. in this case the lender agrees to discount a loan balance if the debtor is unable to pay. the bank's loss mitigation department negotiates with the borrower and comes up easy terms and conditions through which the debtor can pay back the loan. these two plans will affect your credit less than a foreclosure.
feel free to ask if you have further queries.
sussane.