Posted on: 04th Jun, 2007 01:30 pm
Hello - I stumbled upon this forum while performing searches for answers on what we should do. I was hoping I could take a minute of your time to ask for advice.
In September of last year my job was relocated to North GA. We came up here and visited the area and fell in love. We found the house we could spend the majority of the rest of our lives in and we took a gamble and entered into contract to purchase the home. We immediately placed our home back in South Florida on the market. We closed on the new home in December and moved here in January.
We have had no offers on our house in FL now for 9 months. We've lowered the price substantially from the initial asking price, which was fair market at the time. Our asking price today is $65K less than when we initially placed it on the market. We were stuck in a 6 month contract with an agent that was not a good match for us. We are now on our second agent who we are happy with but the market down there is in bad condition right now. We've offered the house for rent, but with the outrageous insurance and real estate tax costs added to the mortgage, we can't afford to drop the rental price any lower as it doesn't even cover half the mortgage payment for the house.
We've been making 2 mortgage payments for 6 months now and we have exhausted all of our liquid cash/assets in this move and paying 2x mortgages. This payment I just sent off for June is the last one we can make. We can't drop the asking price any lower without actually having to come up with cash somehow to cover the difference, when you add closing costs and agent commission, IF we could find a seller. All of our payments up until now have been on time. Our good credit that we've worked hard to build is about to be ruined.
Last week I mailed off an application packet to our lender (CitiMortgage), explaining the situation and asking for help. Our agent seems to think they won't do much to offer help as we've made all of our payments until now. She has mentioned she can handle a short sale if it comes to that - she would deal with the bank directly. I've also read up on Deed-In-Lieu. I understand that both will blemish our credit profiles. We have no intent to move anywhere, we are planning on staying put. In fact, some family members are looking to relocate here as well. I guess we can live with poor credit for a period until we can rebuild it. But I'm not sure what we should do.
Sell at a big loss and find a way to finance the difference?
Short sale?
Deed-In-Lieu?
We'd like to avoid going into foreclosure if possible.
Any suggestions are welcome. We can't take this stress any more. My wife and I never argued until these last few months...it's getting to us, and it's just not worth it. We took a gamble and we lost. Now I just need help trying to figure out what the best option(s) are for us.
Thanks for listening.
In September of last year my job was relocated to North GA. We came up here and visited the area and fell in love. We found the house we could spend the majority of the rest of our lives in and we took a gamble and entered into contract to purchase the home. We immediately placed our home back in South Florida on the market. We closed on the new home in December and moved here in January.
We have had no offers on our house in FL now for 9 months. We've lowered the price substantially from the initial asking price, which was fair market at the time. Our asking price today is $65K less than when we initially placed it on the market. We were stuck in a 6 month contract with an agent that was not a good match for us. We are now on our second agent who we are happy with but the market down there is in bad condition right now. We've offered the house for rent, but with the outrageous insurance and real estate tax costs added to the mortgage, we can't afford to drop the rental price any lower as it doesn't even cover half the mortgage payment for the house.
We've been making 2 mortgage payments for 6 months now and we have exhausted all of our liquid cash/assets in this move and paying 2x mortgages. This payment I just sent off for June is the last one we can make. We can't drop the asking price any lower without actually having to come up with cash somehow to cover the difference, when you add closing costs and agent commission, IF we could find a seller. All of our payments up until now have been on time. Our good credit that we've worked hard to build is about to be ruined.
Last week I mailed off an application packet to our lender (CitiMortgage), explaining the situation and asking for help. Our agent seems to think they won't do much to offer help as we've made all of our payments until now. She has mentioned she can handle a short sale if it comes to that - she would deal with the bank directly. I've also read up on Deed-In-Lieu. I understand that both will blemish our credit profiles. We have no intent to move anywhere, we are planning on staying put. In fact, some family members are looking to relocate here as well. I guess we can live with poor credit for a period until we can rebuild it. But I'm not sure what we should do.
Sell at a big loss and find a way to finance the difference?
Short sale?
Deed-In-Lieu?
We'd like to avoid going into foreclosure if possible.
Any suggestions are welcome. We can't take this stress any more. My wife and I never argued until these last few months...it's getting to us, and it's just not worth it. We took a gamble and we lost. Now I just need help trying to figure out what the best option(s) are for us.
Thanks for listening.
Hi Lee,
Is there any specific reason for which you did not get any single offer for last 9 months? :shock:
Is there any specific reason for which you did not get any single offer for last 9 months? :shock:
Hi Lee,
Welcome to the forums.
Thanks for trusting and sharing your situation. So, what the situations stands is that, you are unable to sell the Florida home but you also have to pay down the mortgage on that house. Well, in case your agent is not being able to help you with the sale in an effective way, then you may go for a deed-in-lieu. I suggest it because deed-in-lieu waives the lender's right to collect the deficiency in case there is a difference between the sale price and the original price at which you purchase the home.
You should immediately have a talk to the lender and ask him if he will allow you to go for it. And, please do not let this situation affect your personal relations – trust me everything will be fine as things settle down a bit.
In case, you need some more information on Deed-in-lieu, refer to the section on this topic.
Take Care
Welcome to the forums.
Thanks for trusting and sharing your situation. So, what the situations stands is that, you are unable to sell the Florida home but you also have to pay down the mortgage on that house. Well, in case your agent is not being able to help you with the sale in an effective way, then you may go for a deed-in-lieu. I suggest it because deed-in-lieu waives the lender's right to collect the deficiency in case there is a difference between the sale price and the original price at which you purchase the home.
You should immediately have a talk to the lender and ask him if he will allow you to go for it. And, please do not let this situation affect your personal relations – trust me everything will be fine as things settle down a bit.
In case, you need some more information on Deed-in-lieu, refer to the section on this topic.
Take Care
Adonis - the market in South Florida basically started unravelling right when we made the decision to go ahead and relocate and placed our house on the market. Not trying to sound full of myself, but our house is one of the nicer ones in the community. It has a great lot on a cul de sac, privacy in back, beautiful landscaping, and we did alot of work in upgrades / updates inside the house (lighting, ceiling fans, door hardware, flooring, paint, etc.) We've always had it priced low, adjusting it as needed as the market kept getting worse.
What's crazy is that if we had listed it 2 months earlier, we could have gotten our asking price within a week or two, easily.
What's crazy is that if we had listed it 2 months earlier, we could have gotten our asking price within a week or two, easily.
Sara -
So you think DIL is the best answer to persue? I'm waiting to hear from CitiMortgage - the package they sent me says they will contact me within 5 days of receiving our hardship application. Hopefully I will hear from them this week.
Thanks, Sara.
So you think DIL is the best answer to persue? I'm waiting to hear from CitiMortgage - the package they sent me says they will contact me within 5 days of receiving our hardship application. Hopefully I will hear from them this week.
Thanks, Sara.
Well Lee, if the lender hasn't thought of a foreclosure, then deed-in-lieu may be a good option. This is because here you don't need paying for any deficit that is occurring due to the house being sold at a price lower than the outstanding loan balance.
However, since you have submitted a hardship application, there are some other alternatives that you may think of considering. These include paying off the mortgage with your insurance policy or requesting the lender for a modification of the repayment plan. I think these options are better than a deed-in-lieu.
However, since you have submitted a hardship application, there are some other alternatives that you may think of considering. These include paying off the mortgage with your insurance policy or requesting the lender for a modification of the repayment plan. I think these options are better than a deed-in-lieu.
citimortgage if it comes to selecting between a short sale and deed in lieu of foreclosure would most likely agree to a short sale instead of taking over the property through deed in lieu.
and as both short sale as well as deed in lieu are going to affect your credit score, any of these two options will work the same for you.
miller
and as both short sale as well as deed in lieu are going to affect your credit score, any of these two options will work the same for you.
miller
wish i would have never bought a house. waiting to hear from citi for deed in lieu. house has not sold. motagage owed since 2/08 :(
Welcome belkis.
Didn't you negotiate with the lender for an alternative repayment plan or a loan modification? I think you'd like to keep the house. When did you send in your request for deed in lieu? when are they expected to give their response? I think it should be done within a few days.
Why don't you just try and look out for some emergency mortgage assistance programs offered by the State Housing Finance Authority? There are in fact a number of options to help you avoid foreclosure and retain your home . Just check out the options and if possible, talk to the lender about the one that may suit you better.
Thanks.
Didn't you negotiate with the lender for an alternative repayment plan or a loan modification? I think you'd like to keep the house. When did you send in your request for deed in lieu? when are they expected to give their response? I think it should be done within a few days.
Why don't you just try and look out for some emergency mortgage assistance programs offered by the State Housing Finance Authority? There are in fact a number of options to help you avoid foreclosure and retain your home . Just check out the options and if possible, talk to the lender about the one that may suit you better.
Thanks.