Posted on: 28th Feb, 2007 11:31 am
My Dad passed away October of 2005 and left me a house. The deed is in my name but the mortgage on the house is still in his name. I\'ve been paying the mortgage and everything but I don\'t want the house cause I frankly can\'t afford to be carrying a mortgage payment. I have the house up for sale but sadly there have been no takers. The house has become a bit of a burden on me is there anyway I can just wash my hands of it.
You can look for someone who is ready to take the house on a lease with purchase option. How long is the house for sale? If it is been too long and you do not see it getting sold in the near future then you can use this option.
It's been sitting on the market since last November. The house needs work... I'm just really fustrated anymore, I can't really afford to fix the house up the way it should be so I'm trying to sell it as is. I'm tempted just to let it go into florecosure and be done with it. The mortgage isn't in my name and doesn't show on my credit report. I'm just really fustrated...
"I'm tempted just to let it go into florecosure and be done with it."
If there is no possibility of getting a buyer for it then allowing the lender to foreclose is one alternative you can select since the mortgage was not in your name. Foreclosure of the house will not affect your credit profile.
If there is no possibility of getting a buyer for it then allowing the lender to foreclose is one alternative you can select since the mortgage was not in your name. Foreclosure of the house will not affect your credit profile.
I talked it over with my mom about that idea but she is convinced that it will affect me in someway. Like the Bank people may sue me or it will show because i payed inheratance tax on it.
And another thing, will the house I have affect my sisters home? He used the house my sister lives in as caldteral (I think?) to get the loan for the house he left to me. I think she has her own mortgage now. Me foreclosing wouldn't hurt her will it??
hi scoslow,
before you stop making payments on the mortgage and let the house go into foreclosure ask the lender if he would agree on taking the house by way of a deed in lieu of foreclosure and not sue for any deficiency judgment. deficiency judgment is what the lender can sue for to recover the balance dues after the house is sold.
foreclosure is time consuming and expensive for any lender also and they would prefer to take over the house instead of going through the foreclosure process. if they accept a deed in lieu of foreclosure then ask them to confirm that they will not be looking to recover any balance loan amount by way of a deficiency judgment (let me add that they would normally agree to it instead of deciding to foreclose).
the other thing you have asked is whether your sister's house will get affected. it will not.
collateral (caldteral) for the mortgage was this present house which was left to you by your father and not your sister's house. collateral is the security against the mortgage for the lender. it means that the lender reserves the right to sell the house and recover the balance on the mortgage if the borrower is not able to pay the loan dues.
let me know if you have any further doubts.
david
before you stop making payments on the mortgage and let the house go into foreclosure ask the lender if he would agree on taking the house by way of a deed in lieu of foreclosure and not sue for any deficiency judgment. deficiency judgment is what the lender can sue for to recover the balance dues after the house is sold.
foreclosure is time consuming and expensive for any lender also and they would prefer to take over the house instead of going through the foreclosure process. if they accept a deed in lieu of foreclosure then ask them to confirm that they will not be looking to recover any balance loan amount by way of a deficiency judgment (let me add that they would normally agree to it instead of deciding to foreclose).
the other thing you have asked is whether your sister's house will get affected. it will not.
collateral (caldteral) for the mortgage was this present house which was left to you by your father and not your sister's house. collateral is the security against the mortgage for the lender. it means that the lender reserves the right to sell the house and recover the balance on the mortgage if the borrower is not able to pay the loan dues.
let me know if you have any further doubts.
david
That sounds like the best option for me. As no one is living there and I can't afford to keep making payments. However even though my name is not on the mortgage will this effect my credit report? I've worked hard to get it back up I hate to see it go down.
Thank you also for your advice
Thank you also for your advice
Hi Scoslow,
You were not on the loan so it won't affect your credit. It does not even appear on your credit report. You can check your credit report now and there would be no mention of this loan in it simply because the mortgage was not taken in your name. But if you had been a co-borrower along with your father then it would have been different.
David
You were not on the loan so it won't affect your credit. It does not even appear on your credit report. You can check your credit report now and there would be no mention of this loan in it simply because the mortgage was not taken in your name. But if you had been a co-borrower along with your father then it would have been different.
David
Welcome Scoslow.
I guess you are talking about your sister's home as the collateral for the loan. If your father had taken the loan against your sister's home, then the lender as the right to ask your sister for the payments. Otherwise, he may be willing to foreclose the loan and sell the property.
Your father has taken out the mortgage loan for buying your home but the loan is secured by your sister's home. This means that if the loan isn't paid off, your sister's house will be in foreclosure.
I think you should try to pay down the loan and if possible, you may take your sister's help in this regard. And, if at all you don't want to keep it, you may sell the property. But then you say it has been in the market for some time now. So, take the help of a real estate agent. A good real estate agent will be able to offer you the right kind of service.
Thanks.
I guess you are talking about your sister's home as the collateral for the loan. If your father had taken the loan against your sister's home, then the lender as the right to ask your sister for the payments. Otherwise, he may be willing to foreclose the loan and sell the property.
Your father has taken out the mortgage loan for buying your home but the loan is secured by your sister's home. This means that if the loan isn't paid off, your sister's house will be in foreclosure.
I think you should try to pay down the loan and if possible, you may take your sister's help in this regard. And, if at all you don't want to keep it, you may sell the property. But then you say it has been in the market for some time now. So, take the help of a real estate agent. A good real estate agent will be able to offer you the right kind of service.
Thanks.