Posted on: 14th Jul, 2010 10:10 pm
I currently make a monthly payment for an empty lot which we thougth at that time was a good investment. The mortgage in under my name, my wife and my sister. My sister back out from her monthly share of payment 2 1/2 years ago. My wife and I has been making the monthly payment ever since. January 2010 I lost my job but lucky enough to find another one after a month and half. The problem is that my income dropped significantly by 30% plus our 5 year fixed mortgage for our primary residence has expired thus our monthly mortgage for our primary residence increased significantly. I can not afford anymore to make the monthly mortgage payment for the lot that we purchased.
Will taking the deed in lieu option the best way to free us of the monthly mortgage for the lot?
Please advise.
Will taking the deed in lieu option the best way to free us of the monthly mortgage for the lot?
Please advise.
hi nanay!
welcome to forums!
you can apply for a deed in lieu of foreclosure with your lender and try to get rid of the property. if the lender accepts your request, then you'll be able to sell off your property and won't be liable for paying off the deficient balance resulting from the sale. however, this would reduce your credit score by 250 points.
feel free to ask if you've further queries.
sussane
welcome to forums!
you can apply for a deed in lieu of foreclosure with your lender and try to get rid of the property. if the lender accepts your request, then you'll be able to sell off your property and won't be liable for paying off the deficient balance resulting from the sale. however, this would reduce your credit score by 250 points.
feel free to ask if you've further queries.
sussane
Thank you for the response on my inquiry. If the lender will not accept my request, will foreclosure of the property be my last option? I contacted a real estate office in the area and he said I will even be lucky if he will be able to sell the lot between $10K to $15K, we still owe $37K out of the original cost of $58K. He believes that the real estate market in the area will not be able to recover until 5-10 years. Plus he mentioned that the county is proposing an increase in the property tax on top of what we currently pay annually of $1,200.
Please advise.
Thanks.
Please advise.
Thanks.
Hi nanay,
In case the lender does not accept your request, then you can apply for a short sale. If your request is accepted, it will help you in getting rid of the property but you would be liable for the deficient balance resulting from the sale of the property. Also, the credit affects in this case will be less compared to a deed in lieu of foreclosure. In case, the lender does not accept your short sale request, then you may have to let the property go into foreclosure.
In case the lender does not accept your request, then you can apply for a short sale. If your request is accepted, it will help you in getting rid of the property but you would be liable for the deficient balance resulting from the sale of the property. Also, the credit affects in this case will be less compared to a deed in lieu of foreclosure. In case, the lender does not accept your short sale request, then you may have to let the property go into foreclosure.
Thanks again. This forum website is really very helpful especially to those people that have common predicaments in real estate property ownership.
If my last recourse is the property foreclosure, what are the steps that I have to do? Do I have to call the lender to let them know that we will have the propery foreclosed since they are not giving us anymore options other than the foreclosure? Please advise. Thanks.
If my last recourse is the property foreclosure, what are the steps that I have to do? Do I have to call the lender to let them know that we will have the propery foreclosed since they are not giving us anymore options other than the foreclosure? Please advise. Thanks.
Hi nanay,
You don't have to ask the lender to foreclose the property. If the lender does not receive his dues on time, then he would send you a pre-foreclosure notice and let you know that he would be foreclosing the property.
Thanks
You don't have to ask the lender to foreclose the property. If the lender does not receive his dues on time, then he would send you a pre-foreclosure notice and let you know that he would be foreclosing the property.
Thanks