Posted on: 17th Dec, 2008 01:28 pm
Hello!
Here is my situation in a nutshell. I own a home in MI (did a first and second on it) and a home in TN (did a first and second on it) and have a car that is paid off. The home in Michigan is empty and is a drain on me financially and I can't even get anyone to look at it, let alone buy it.
Currently, I am not late on any of my bills. My company just cut my salary by 10%. I will soon need to chose which bill(s) I pay late. Since, honestly, the only debt that is anchoring me down right now is the empty home in Michigan...I am thinking that is the bill I will pay late or not pay. All my other debts will be paid on-time.
I called my mortgage lender for the MI house and they wont even talk to me or discuss options until I am past due on my payments. So, now, I am thinking my only option is to not make my payments for the home in MI to force a discussion of options. I do not want the property in Michigan and need to get rid of it since my house payment has increased exponentially since I lost the Homestead Tax Exemption and my income is decreasing. I tried to do it the right way, but it's no longer possible. I would like to just give it back (deed in lieu), but I don't know if that will be an option since I am paying my other debts. Any suggestions??
I don't want to lose my condo in TN or my car that is paid off. Can any help me with what might happen to me?
Thanks!
Here is my situation in a nutshell. I own a home in MI (did a first and second on it) and a home in TN (did a first and second on it) and have a car that is paid off. The home in Michigan is empty and is a drain on me financially and I can't even get anyone to look at it, let alone buy it.
Currently, I am not late on any of my bills. My company just cut my salary by 10%. I will soon need to chose which bill(s) I pay late. Since, honestly, the only debt that is anchoring me down right now is the empty home in Michigan...I am thinking that is the bill I will pay late or not pay. All my other debts will be paid on-time.
I called my mortgage lender for the MI house and they wont even talk to me or discuss options until I am past due on my payments. So, now, I am thinking my only option is to not make my payments for the home in MI to force a discussion of options. I do not want the property in Michigan and need to get rid of it since my house payment has increased exponentially since I lost the Homestead Tax Exemption and my income is decreasing. I tried to do it the right way, but it's no longer possible. I would like to just give it back (deed in lieu), but I don't know if that will be an option since I am paying my other debts. Any suggestions??
I don't want to lose my condo in TN or my car that is paid off. Can any help me with what might happen to me?
Thanks!
It is sad that alot of lenders wont negotiate untill there is a past due payment or 2 but its the way things are right now
If you stop paying you will not lose your condo but your credit will be ruined and there will be a foreclosure on the MI house
If you stop paying you will not lose your condo but your credit will be ruined and there will be a foreclosure on the MI house
Hi kmewonder,
Yes, lender will not consider the option of deed in lieu because you have still not defaulted on the payments. Moreover it will be the lender's discretion whether he will accept a deed in lieu or not. If the lender does not agree for a deed in lieu foreclosure, you can speak to the lender about other options. Short sale is one of them.
However, as Eugene Volovik has mentioned, whether it is a deed in lieu or a short sale, your credit will be affected.
Thanks
Yes, lender will not consider the option of deed in lieu because you have still not defaulted on the payments. Moreover it will be the lender's discretion whether he will accept a deed in lieu or not. If the lender does not agree for a deed in lieu foreclosure, you can speak to the lender about other options. Short sale is one of them.
However, as Eugene Volovik has mentioned, whether it is a deed in lieu or a short sale, your credit will be affected.
Thanks
