Posted on: 21st Jul, 2011 11:23 pm
I am glad I found this forum and thank you.
I have everything in my name, and my credit is golden, but we are behind on everything.
I am trying to decide to let the house go into forclosure, or short sale. I hate to loose my credit (790) but... if the short sale will knock it down alot, then I might as well file bankruptcy. (since it will be damaged anyways),
We bought our home, which we want to leave for $ 101K and now neighbors are buying similiar (literally next door) for Mid $ 80ks.
We bring home around $ 4k per month. We owe $ 11k on a car, and $ 13k in credit cards. Everything is in my name as her credit is around 610. We are getting her score up and want to buy the next house in her name only.
Should I do forclosure or short sale and pay of the debts? Or let it all go?
I have everything in my name, and my credit is golden, but we are behind on everything.
I am trying to decide to let the house go into forclosure, or short sale. I hate to loose my credit (790) but... if the short sale will knock it down alot, then I might as well file bankruptcy. (since it will be damaged anyways),
We bought our home, which we want to leave for $ 101K and now neighbors are buying similiar (literally next door) for Mid $ 80ks.
We bring home around $ 4k per month. We owe $ 11k on a car, and $ 13k in credit cards. Everything is in my name as her credit is around 610. We are getting her score up and want to buy the next house in her name only.
Should I do forclosure or short sale and pay of the debts? Or let it all go?
Hi btedder!
Welcome to forums!
Short sale can be a good option in order to get rid of the property. However, it will lower your credit score by 80-100 points and you'll be liable for paying the deficient balance resulting from the sale of the property. In case you go for foreclosure, it will lower your credit score by 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Short sale can be a good option in order to get rid of the property. However, it will lower your credit score by 80-100 points and you'll be liable for paying the deficient balance resulting from the sale of the property. In case you go for foreclosure, it will lower your credit score by 250 points.
Feel free to ask if you've further queries.
Sussane
You are only underwater by 20k if that. If you can afford to make your mortgage payment, then you should continue to pay on the loan obligation that you promised to pay. I do not believe on walking away from property if you can foot the bill. It is one thing to lose your job, or spouse dies, but to walk away when you can make the payments is just wrong. The housing market is a cycle, up an down, the value will return to the home. Could be several years, but history shows, property values have ALWAYS increased. Each person that walks away from their mortgage, creates a bigger problem and makes the national recovery even longer. Once you give up your home, then the bank has to sell it to someone else at a discount, then that investor has to re-sell the home at regular market prices, just for the value of your neighbors homes to stay above the foreclosure market. The lending industry suffers, your neighbors suffer, and so does the whole economy. But if you truly cannot pay your bills, file BK on the credit cards and start over. If you cant afford anything, then go for the short sale, as this will impact your credit the least. Keep in mind like Sussane mentioned, some states have deficiency judgements that can come after you for 20 years and attach to any property you may own now, or in the future. Good luck!
