Posted on: 24th Jun, 2009 05:43 pm
What do I do? I am now under water on my home. We have do other debt, than our home. The home is in excellent shape as well as our credit score 800. We are not behind and are now making modified payments because of a work injury I am looking at having several surgeries in the future, we can not stay in this home. The first lien holder will except a short sale of $641,250 ( which will cover the entire first mortgage of $618,000 , commission and taxes). They will also except a died in lieu after listing it for 90 days with a BPO of $675,000. The second (58,000) will release the lien, but said we will have to pay this entire amount back. One year ago it appraised for 925,000 I do not want to go through a foreclosure. Do I keep making my modified house payment or stop, since I will need to move? Do I keep paying the second? Is their a way to save my credit so I can purchase again in a few years after I am healed and working? Any help would be appreciated, thank you.
Tasha
Welcoem to the forum
You are probbaly better off doign the shortsale and paying off the second.
Shortsale will have 50 - 100 of impact onyour credit score
Also try to negotiate with the second lender to see if they can talk to the first to get some money with the short sale
Good luck and feel free to ask
Welcoem to the forum
You are probbaly better off doign the shortsale and paying off the second.
Shortsale will have 50 - 100 of impact onyour credit score
Also try to negotiate with the second lender to see if they can talk to the first to get some money with the short sale
Good luck and feel free to ask
hi tasha,
if you want to save your credit and purchase a new home in future, you need to continue making payments towards both the loans. if you stop making payments, it will affect your credit and your chances of qualifying for a new loan. you can now list your property on the market and see if it sells and how much it sells for. given the situation of the market, if it does not sell, you will have to do a deed in lieu of foreclosure. but whether you short sell your house or do a deed in lieu, you will have to wait for at least 1½-2 years to qualify for a new mortgage. if you have late payments on top of a short sale or a dil, your wait for a new home could be even longer.
if you want to save your credit and purchase a new home in future, you need to continue making payments towards both the loans. if you stop making payments, it will affect your credit and your chances of qualifying for a new loan. you can now list your property on the market and see if it sells and how much it sells for. given the situation of the market, if it does not sell, you will have to do a deed in lieu of foreclosure. but whether you short sell your house or do a deed in lieu, you will have to wait for at least 1½-2 years to qualify for a new mortgage. if you have late payments on top of a short sale or a dil, your wait for a new home could be even longer.