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house has fallen below the original value

Posted on: 15th Apr, 2009 11:56 am
i can't afford the 1324 monthly payment on my limited income. also there is a 50,000 home equity loan that i am paying. the mortgage balance is 117,000. what can i do?
hi sallyarthur,

if you want to keep the house, you should talk with the loss mitigation dept. and explore the option of a loan modification. this can help you reduce your monthly payments. if a modification is not possible and you want to get rid of the house, you can go for a short sale or deed in lieu.
Posted on: 15th Apr, 2009 10:10 pm
I am not interested in keeping the house. It is too larege for one person (four large bedrooms) but know it won't sell for what is owed on it. How does a person go about walking away and what are the legal problems?
Posted on: 16th Apr, 2009 05:25 am
check with your bank for your options before walkign away. It will affect your credit score and affects you for a logn term.

May be if your bank can readjusts your payment, you may be able to rent the house to cover your payment.
Posted on: 16th Apr, 2009 10:11 pm
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