Posted on: 28th Sep, 2008 07:04 pm
In July 2007 my husband and I moved from OH to GA because of employment. We bought a house in GA while we are still waiting for the house in OH to sell. Paying two mortgages has really been a strain financially and is totally wiping out our savings. Also my husband is now looking for a new job because of a layoff. We can't afford to carry the OH mortgage anymore which is about $3400/month because of the job loss and not knowing when he will get another one. For over a yr we have been taking care of this obligation while not living there but unfortunately can't maintain it anymore. What options are there besides foreclosure? And what effect will it have on our credit?
Hi pettygalla!
Welcome to forums!
There are few options for you. You can rent the house in OH and pay your debts with that money. In case if this is not possible, there are two options left with you. You can either go for a deed in lieu or short sale. The process is same in both the cases. In deed-in-lieu, you will have to give away the property to the lender who will give you a note stating that the debt is paid. After this, the lender will try to sell the property in the market and try to recover his debts. In most of the cases, the lenders can't recover the full debts from the sale. So there remains a deficient amount between the debts that you had and the money recovered by the lender by selling it. The lenders generally forgive the deficient amount. However, the tax department considers this as an income and will charge you taxes. In case of short sale, however, the lender will demand the deficient amount from you.
Both deed-in-lieu and short sale will affect your credit but the negative impacts will be far lesser than a foreclosure.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
There are few options for you. You can rent the house in OH and pay your debts with that money. In case if this is not possible, there are two options left with you. You can either go for a deed in lieu or short sale. The process is same in both the cases. In deed-in-lieu, you will have to give away the property to the lender who will give you a note stating that the debt is paid. After this, the lender will try to sell the property in the market and try to recover his debts. In most of the cases, the lenders can't recover the full debts from the sale. So there remains a deficient amount between the debts that you had and the money recovered by the lender by selling it. The lenders generally forgive the deficient amount. However, the tax department considers this as an income and will charge you taxes. In case of short sale, however, the lender will demand the deficient amount from you.
Both deed-in-lieu and short sale will affect your credit but the negative impacts will be far lesser than a foreclosure.
Feel free to ask if you have further queries.
Sussane
Hi pettygalla!
Renting your home is obviously a very good idea. In case you do not find renters, you can speak to the lender and can negotiate on a payment plan which is suitable for you. This will help you in paying the debts on easier terms and conditions.
Thanks,
Jerry
Renting your home is obviously a very good idea. In case you do not find renters, you can speak to the lender and can negotiate on a payment plan which is suitable for you. This will help you in paying the debts on easier terms and conditions.
Thanks,
Jerry
Hi pettygalla
This ia all good advice. Except nobody has mentioned who long you have struggled to pay the Ohio home mortgage. If you have fallen 30 to 45 days behind for the most part the lender will do little to negotiate with. You will need 3 party representation. So you can try a short sale deed in lieu all you want but without this vital component the lender does not have to listen to you according to law. Private message me I will point you in the direction of some help.
This ia all good advice. Except nobody has mentioned who long you have struggled to pay the Ohio home mortgage. If you have fallen 30 to 45 days behind for the most part the lender will do little to negotiate with. You will need 3 party representation. So you can try a short sale deed in lieu all you want but without this vital component the lender does not have to listen to you according to law. Private message me I will point you in the direction of some help.
I have the only income in our home and we are 4mos behind, we had a modification feb. 2008, int rt taken down for 3 yrs to 8.625 but had escrow acct added for taxes for 1 year and now our mortgage is up $755.00 but my wife lost her job and we can't afford to pay it on one income and our other bills and take care of our 3 children. what do we do? we've been in the house for 14 years and refinancing 3 years ago messed us up with this arm, we didn't know about the fixed rate needed to keep us from drowning.
hi james johnson!
if you can afford loosing the house, you can go in for a deed-in-lieu foreclosure or a short sale. in both this situation, you will have to write away your home to the lender who will sell it in the market to recover his debts. in most cases, the lenders are unable to recover the full debt. in case of deed in lieu foreclosure, there are chances he may forgive your debt. but in case of short sale, the lenders ask the debtors to pay the deficient amount.
if you cannot afford to loose your home, you may file a chapter 13 bankruptcy. this helps in reorganizing your debts. the lenders will give you an easier plan through which through which you will be able to clear off the debts.
thanks.
if you can afford loosing the house, you can go in for a deed-in-lieu foreclosure or a short sale. in both this situation, you will have to write away your home to the lender who will sell it in the market to recover his debts. in most cases, the lenders are unable to recover the full debt. in case of deed in lieu foreclosure, there are chances he may forgive your debt. but in case of short sale, the lenders ask the debtors to pay the deficient amount.
if you cannot afford to loose your home, you may file a chapter 13 bankruptcy. this helps in reorganizing your debts. the lenders will give you an easier plan through which through which you will be able to clear off the debts.
thanks.