Posted on: 12th Nov, 2008 05:16 pm
Last summer, we put our house on the market and began searching for a new home in different town where my husband had begun a new, better paying job. We found our dream home before the old home ever sold. After about six months on the market, a relative asked if she could purchase our old home on a land-contract. We agreed, not requiring our family member to come up with the traditional 10% down payment. No down payment was secured. Six months later, our relative backed out of the land contract and moved out. The old house sits empty with a FOR SALE BY OWNER sign in front. We have a $65,000 1st mortgage and a $12,000 2nd mortgage on the old house (only about $885 each month). On the dream house, we have a $116,000 1st mortgage ($1,060 each month). Both 1st mortgages are with the same mortgage company. We make around $5000 a month. We are paying out more than we make thanks to several credit cards, an auto loan, and a tractor loan. The dream house sits on 11 acres.
Hi Guest!
Welcome to forums!
Did you try renting your first house? If you can find a tenant, then you can place the house on rent and pay of the mortgage from that money. You can even try the option of loan modification provided that your lender agrees to this. You can submit a hardship letter to the lender and speak to the loss mitigation department.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Did you try renting your first house? If you can find a tenant, then you can place the house on rent and pay of the mortgage from that money. You can even try the option of loan modification provided that your lender agrees to this. You can submit a hardship letter to the lender and speak to the loss mitigation department.
Feel free to ask if you have further queries.
Sussane
Hi Guest!
If you can afford to lose the old house, you may also try the options of deed-in-lieu foreclosure and short sale. However, you will have to apply to the lender for the same. Its totally the lender's discretion whether he will approve it or not.
In both these processes, you will have to deed away the house to the lender and he will try to sell the property in the market. This will help him in recovering the debt. However, there may remain a deficient amount (amount owed - amount recovered) from the sale. In case of deed-in-lieu, the lender may forgive it but in case of short sale, you will have to pay it to the lender.
Thanks.
If you can afford to lose the old house, you may also try the options of deed-in-lieu foreclosure and short sale. However, you will have to apply to the lender for the same. Its totally the lender's discretion whether he will approve it or not.
In both these processes, you will have to deed away the house to the lender and he will try to sell the property in the market. This will help him in recovering the debt. However, there may remain a deficient amount (amount owed - amount recovered) from the sale. In case of deed-in-lieu, the lender may forgive it but in case of short sale, you will have to pay it to the lender.
Thanks.
Hi Guest,
So, you wish to give back the old house to the mortgage company? well, did you inform the mortgage company about the land contract?
If you're not getting a potential buyer, I'll suggest is that you look out for a buyer who will accept a lease-to-purchase agreement on your old home. This way, you can use the lease payments to pay off the mortgage. And the buyer too will get some time to accumulate enough money to purchase your home.
Good luck
So, you wish to give back the old house to the mortgage company? well, did you inform the mortgage company about the land contract?
If you're not getting a potential buyer, I'll suggest is that you look out for a buyer who will accept a lease-to-purchase agreement on your old home. This way, you can use the lease payments to pay off the mortgage. And the buyer too will get some time to accumulate enough money to purchase your home.
Good luck
hold on, kids...nowhere did our guest indicate that they wanted to give back the house to the lender. please read what our posters say before responding...we tend to read the subsequent posters' commentary and respond to them instead.
on a short sale, the lender isn't going to take the property and sell it, jameshogg. it's up to the borrower to sell it in that situation, though you are correct in stating that there is a negotiation process with the lender. to be successful in arranging for the short sale, our guest is going to have to do some homework; specifically, searching to find comparable homes that have sold, so as to convince the lender that the property is worth less than the balance owed. i didn't see any mention of that in our guest's post, however.
we who respond to inquiries on this forum need to be very careful that we don't lead people down the wrong path. it is all too easy to throw out advice that is either partially correct or not at all correct; and it is very tempting for those folk who are in trouble with their finances to take such advice and run with it. frankly, it's alarming to see some of what passes for "advice" up here.
on a short sale, the lender isn't going to take the property and sell it, jameshogg. it's up to the borrower to sell it in that situation, though you are correct in stating that there is a negotiation process with the lender. to be successful in arranging for the short sale, our guest is going to have to do some homework; specifically, searching to find comparable homes that have sold, so as to convince the lender that the property is worth less than the balance owed. i didn't see any mention of that in our guest's post, however.
we who respond to inquiries on this forum need to be very careful that we don't lead people down the wrong path. it is all too easy to throw out advice that is either partially correct or not at all correct; and it is very tempting for those folk who are in trouble with their finances to take such advice and run with it. frankly, it's alarming to see some of what passes for "advice" up here.
