Posted on: 06th Oct, 2009 07:21 am
Hi:
I have a situation where I got married and we both owned homes when we got married.
Of course this is when the market decided to collaspe and now we have the house we live in (which we got refi on a fha loan strictly in the wifes name) and my house.
My house is at 7% fixed, and according to the realtor will sale in the current market for 145k -- loan is for 177k.
BOA says I qualify for a refi since it is a freddie mac loan but they are still waiting for "guidelines" (3 months) and the HUD counselors said i dont qualify for them to help because its an investment property.
The renter we have is moving out at the end of the month. We are already renting it at a loss and now we have to come up with the total mortgage.
This second house is bleeding us dry.
Not sure what to do. BofA basically has said they cant offer help me until I miss payments which screws your credit.
What are you supposed to do?
I have a situation where I got married and we both owned homes when we got married.
Of course this is when the market decided to collaspe and now we have the house we live in (which we got refi on a fha loan strictly in the wifes name) and my house.
My house is at 7% fixed, and according to the realtor will sale in the current market for 145k -- loan is for 177k.
BOA says I qualify for a refi since it is a freddie mac loan but they are still waiting for "guidelines" (3 months) and the HUD counselors said i dont qualify for them to help because its an investment property.
The renter we have is moving out at the end of the month. We are already renting it at a loss and now we have to come up with the total mortgage.
This second house is bleeding us dry.
Not sure what to do. BofA basically has said they cant offer help me until I miss payments which screws your credit.
What are you supposed to do?
Hi treymicheal,
If you want to get rid of the property, i.e. if you want to sell off the property, then a deed in lieu could be considered as a good option for you. In the process of deed in lieu of foreclosure, the lender would sell off the property and recover his dues. But in most cases, the lenders do not accept a deed in lieu unless you're delinquent on your mortgage payments. So, I doubt whether or not your lender would accept your request for a deed in lieu unless you're delinquent on your mortgage dues.
If you want to get rid of the property, i.e. if you want to sell off the property, then a deed in lieu could be considered as a good option for you. In the process of deed in lieu of foreclosure, the lender would sell off the property and recover his dues. But in most cases, the lenders do not accept a deed in lieu unless you're delinquent on your mortgage payments. So, I doubt whether or not your lender would accept your request for a deed in lieu unless you're delinquent on your mortgage dues.
spoke to a professional mitigator which said i have basically a few options since the goal is to get rid of the house, and sort of try and save my credit
1. sale it and make up the difference
2. ask for a short sale which BofA is notoriously slow for even responding to, and then ask for a 0% note on the rest -- which savesthe credit
3. regular short sale, let my credit go to hell, because their is no point in making payments in the process since your credit is screwed anyway
1. sale it and make up the difference
2. ask for a short sale which BofA is notoriously slow for even responding to, and then ask for a 0% note on the rest -- which savesthe credit
3. regular short sale, let my credit go to hell, because their is no point in making payments in the process since your credit is screwed anyway
Hi treymicheal,
It is true that if you go for a deed in lieu or a short sale, it would badly affect your credit. The way by which you would be able to save the property is to sell it yourself and pay off the deficient amount to the lender. If you can afford to do this, then you can go ahead with this plan. You can list the property in the market and check out if you can get buyers for it.
Thanks
It is true that if you go for a deed in lieu or a short sale, it would badly affect your credit. The way by which you would be able to save the property is to sell it yourself and pay off the deficient amount to the lender. If you can afford to do this, then you can go ahead with this plan. You can list the property in the market and check out if you can get buyers for it.
Thanks