Posted on: 29th Sep, 2008 12:28 pm
hello,
i am wasting soooo much money in a bad mortgage. a lawyer has advised me to stop payments, force a foreclosure, then hire a bankruptcy lawyer and file chapter 13...
i am only 30 but am umarried...my credit has suffered and i am now in the lower 500's is this a smart move?
it is worth over 25,000 less than i paid and a short sale or refinance are probably not going to happen with the current state of the economy.
please i am so worried about the long term effects of such a drastic move
i am wasting soooo much money in a bad mortgage. a lawyer has advised me to stop payments, force a foreclosure, then hire a bankruptcy lawyer and file chapter 13...
i am only 30 but am umarried...my credit has suffered and i am now in the lower 500's is this a smart move?
it is worth over 25,000 less than i paid and a short sale or refinance are probably not going to happen with the current state of the economy.
please i am so worried about the long term effects of such a drastic move
Put my how on the maket for $360,000It is worth about $380,000. I'm in financial problems and cannot keep a $3100 a month mortgage. Can forclosure be the answer to my problems or should I look at a short sale?
hi sierra!
welcome to the forums!
i understand your situations. it is a tough time that you are facing. but do not worry, things will be alright. coming to your questions, have you spoken to your lender whether he will be able to offer you refinance. you can speak to him about that. if he agrees then things will be fine for you. in case this option is unable speak to the lender about short sale. i know that the situation in the real estate market is not good, but will suggest you not to assume things.
if both these options are unavailable then you will have to file bankruptcy. yes, your credit score will be definitely affected by it but you should remember that chapter 13 bankruptcy will also help you in reorganizing your debts. though initially your credit score will be affected, but it will improve once you start paying according to the new payment plan given by the lender. in this way you will also be able to clear off your debts in 3-5 years.
feel free to ask if you have further queries.
sussane
welcome to the forums!
i understand your situations. it is a tough time that you are facing. but do not worry, things will be alright. coming to your questions, have you spoken to your lender whether he will be able to offer you refinance. you can speak to him about that. if he agrees then things will be fine for you. in case this option is unable speak to the lender about short sale. i know that the situation in the real estate market is not good, but will suggest you not to assume things.
if both these options are unavailable then you will have to file bankruptcy. yes, your credit score will be definitely affected by it but you should remember that chapter 13 bankruptcy will also help you in reorganizing your debts. though initially your credit score will be affected, but it will improve once you start paying according to the new payment plan given by the lender. in this way you will also be able to clear off your debts in 3-5 years.
feel free to ask if you have further queries.
sussane
Hi Vincent!
Welcome to the forums!
Foreclosure will be the last option for you. You should definitely consider both short sale and deed-in-lieu. You have mentioned that you have listed your home for sale. If you can get buyers then things will be alright. In case, you do not get buyers, you can also rent your house and with the rent pay off the debts.
Always remember that a foreclosure will affect your credit score much more that a short sale or a deed-in-lieu.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
Foreclosure will be the last option for you. You should definitely consider both short sale and deed-in-lieu. You have mentioned that you have listed your home for sale. If you can get buyers then things will be alright. In case, you do not get buyers, you can also rent your house and with the rent pay off the debts.
Always remember that a foreclosure will affect your credit score much more that a short sale or a deed-in-lieu.
Feel free to ask if you have further queries.
Sussane