Posted on: 23rd Jun, 2009 06:16 pm
My wife and I have a home that has been on the market for 90 + days. We only have one loan on it. Our jobs have relocated us out of state. Homes in our area are listed for half of what we bought it for 3 yrs. ago and NOT selling. In addition, we are taking a 50% drop in our income. We have great credit, pay all of our bills on time, but will not be able to keep paying our mortgage AND be able to afford to live and raise our child in our new location. We have savings(not much) but want to do a DIL and are willing to part with the savings as long as there is no recourse. Is this the best way to go
tripper
Welcoem to the forum
Since you ahve already listed the house on the market, your want o get a good short sale specialist and ask your bank to do a shor sale.
One of things bank want to see is, if the house was listed on and did not get sold
If that does nto work then you can go for Deed in lieu
Good luck and feel free to ask
Welcoem to the forum
Since you ahve already listed the house on the market, your want o get a good short sale specialist and ask your bank to do a shor sale.
One of things bank want to see is, if the house was listed on and did not get sold
If that does nto work then you can go for Deed in lieu
Good luck and feel free to ask
TRIPPER,
short sell is the best option for you so that it will not hamper your credit anyway. as against DIL or foreclosure.
keep in touch....
short sell is the best option for you so that it will not hamper your credit anyway. as against DIL or foreclosure.
keep in touch....
hi tripper,
since your house has been listed for 3 months without any success, a short sale does not seem to be a possible option. with relocation due to the new job and a 50% drop in your current income, it is unlikely that you will be able to afford the payments, even if your lender modifies your loan. in such a situation, a deed in lieu of foreclosure seems to be the only option. talk with the loss mitigation department of your mortgage holder and check if a deed in lieu is possible in your situation.
since your house has been listed for 3 months without any success, a short sale does not seem to be a possible option. with relocation due to the new job and a 50% drop in your current income, it is unlikely that you will be able to afford the payments, even if your lender modifies your loan. in such a situation, a deed in lieu of foreclosure seems to be the only option. talk with the loss mitigation department of your mortgage holder and check if a deed in lieu is possible in your situation.
I think first you should try for loan modification, provided you are able to pay monthly on time.
Mortgage loan modification is surely a better option than deed in lieu foreclosure as because it helps you keep your home. At the same time, you can save your credit from taking a big hit. That's because loan modification allows you to negotiate for lower rate on your mortgage. You may also get a principal reduction on your loan.
If you have missed payments, they can be added to your loan balance and the term extended so that your monthly payments become low and affordable. So, loan modification is no doubt a better choice as compared to deed in lieu.
Second option is Special Forbearance. Your lender may be able to arrange a repayment plan which would be based upon your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced an involuntary reduction in income or an increase in living expenses. You must have also furnished information to your lender to show that you would be able to meet the requirements of the new payment plan.
Mortgage loan modification is surely a better option than deed in lieu foreclosure as because it helps you keep your home. At the same time, you can save your credit from taking a big hit. That's because loan modification allows you to negotiate for lower rate on your mortgage. You may also get a principal reduction on your loan.
If you have missed payments, they can be added to your loan balance and the term extended so that your monthly payments become low and affordable. So, loan modification is no doubt a better choice as compared to deed in lieu.
Second option is Special Forbearance. Your lender may be able to arrange a repayment plan which would be based upon your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced an involuntary reduction in income or an increase in living expenses. You must have also furnished information to your lender to show that you would be able to meet the requirements of the new payment plan.
tripper
If you are not worried about how much you are gooign to have an impact on yoru credit report, then go with deed in lieu
Good luck
If you are not worried about how much you are gooign to have an impact on yoru credit report, then go with deed in lieu
Good luck