Posted on: 28th Jun, 2011 07:08 am
In a pickle and need some advice.
I've been in my home for 5 years. Since that time, I've had a lot of hardships. I was unemployed for 2 years but recently got another job. However, my expenses have increased considerably with medical bills, increased daycare, student loans, etc. Plus, my home is 30 years old, is underwater $20K, and has several major problems (foundation, electrical, plumbing). I've also had an inspector come out to test for mold because I've smelled mildew and my 2 yr old is constantly sneezing, rubbing eyes, etc. She has mold allergies. It seems like every week something is going out or I find another crack in the ceiling or floors. I'm so frustrated because I can not afford these repairs on top of mortgage.
I want to leave the home. Thought of maybe renting or trying to short sale but both options would require that I fix the problems with the home and again, I can't afford it. Currently I'm considering requesting a deed-in-lieu from my lender (BoA). Would I qualify if I'm current with my payments? And would I qualify if I stopped making payments or would that be a flat out foreclosure. I do have a 401K that has dwindled after being unemployed. I have put some of the money I've borrowed from my 401K in my savings to cover some of my medical expenses. Will BoA look at this money and automatically deny my request? And before the question is asked, no I do not have enough money in my savings to cover the repair expenses of the home. How should I approach this?
I've been in my home for 5 years. Since that time, I've had a lot of hardships. I was unemployed for 2 years but recently got another job. However, my expenses have increased considerably with medical bills, increased daycare, student loans, etc. Plus, my home is 30 years old, is underwater $20K, and has several major problems (foundation, electrical, plumbing). I've also had an inspector come out to test for mold because I've smelled mildew and my 2 yr old is constantly sneezing, rubbing eyes, etc. She has mold allergies. It seems like every week something is going out or I find another crack in the ceiling or floors. I'm so frustrated because I can not afford these repairs on top of mortgage.
I want to leave the home. Thought of maybe renting or trying to short sale but both options would require that I fix the problems with the home and again, I can't afford it. Currently I'm considering requesting a deed-in-lieu from my lender (BoA). Would I qualify if I'm current with my payments? And would I qualify if I stopped making payments or would that be a flat out foreclosure. I do have a 401K that has dwindled after being unemployed. I have put some of the money I've borrowed from my 401K in my savings to cover some of my medical expenses. Will BoA look at this money and automatically deny my request? And before the question is asked, no I do not have enough money in my savings to cover the repair expenses of the home. How should I approach this?
welcome ivygirl,
if you stop making the payments, then the lender will have the rights to foreclose the property. applying for a deed in lieu of foreclosure will be a good option. if you're already past due on your mortgage payments, then it will be easier for you to qualify for a deed in lieu of foreclosure. if you can convince bofa about your financial hardship, then they won't deny your request.
if you stop making the payments, then the lender will have the rights to foreclose the property. applying for a deed in lieu of foreclosure will be a good option. if you're already past due on your mortgage payments, then it will be easier for you to qualify for a deed in lieu of foreclosure. if you can convince bofa about your financial hardship, then they won't deny your request.