Posted on: 19th Oct, 2010 12:04 pm
We own a home in NY that we have been trying to get a loan mod on since 2007. Since then, my husband lost his job and took a new job out of state. We have been paying our mtg on time, but have had the house on the market since April and it is not moving. We owe so much on the house since we were in an adjustable rate mtg, so we know we are in a situation that may be resolved with a short sale. The problem is that my in-laws lent us money to buy a house in MI and we don't know what implications this will have trying to short sale the house in NY. We were JUST approved for a loan modification last week, but aren't sure if we should proceed with that knowing that we are not in the house and knowing that we need to sell. Or can we pay off the first mtg and keep the second and continue paying that off? Not sure what to do!
Hi hexter,
If you don't want to keep the property, then it doesn't make sense to modify the loan. You should contact your lender and apply for a short sale. However, if the name of your in-laws are mentioned on the mortgage docs, then the short sale will have a negative affect on their credit report. It will lower their credit scores by 75-100 points and the lender can come after them to recover the balance dues.
Take care.
If you don't want to keep the property, then it doesn't make sense to modify the loan. You should contact your lender and apply for a short sale. However, if the name of your in-laws are mentioned on the mortgage docs, then the short sale will have a negative affect on their credit report. It will lower their credit scores by 75-100 points and the lender can come after them to recover the balance dues.
Take care.