Posted on: 21st Sep, 2010 07:39 pm
I own a vacation property with a partner which is serverly underwater. I am listed as the applicant and he is the co applicant. He is looking to default and walk away from the property and willing to take the credit hit. I however do not want to do that as I can afford my half of the loss. Do I have any options to only be responsible for my half of the loan?
hi cj_public,
you can contact the lender and refinance the mortgage if there is equity in the property. this will make you the solely responsible for the mortgage. you can, then, pay off the mortgage and save the property as well as your credit.
thanks,
jerry
you can contact the lender and refinance the mortgage if there is equity in the property. this will make you the solely responsible for the mortgage. you can, then, pay off the mortgage and save the property as well as your credit.
thanks,
jerry
we are underwater, so no equity. i don't mind carrying my half of the loss but he wants to default which from what i understand would put me in a position where i default with him (which i don't want to) or i carry the entire burden. I'm wondering what my options are beyond those two.
Hi Guest,
If the other borrower defaults the mortgage payments, you will have to pay off the dues in full or else the lender will foreclose the property. You and the other borrower can apply for a loan modification so that you can get affordable rates and terms to pay off the dues. This will help you in saving the property and your credit won't get affected much.
Take care.
If the other borrower defaults the mortgage payments, you will have to pay off the dues in full or else the lender will foreclose the property. You and the other borrower can apply for a loan modification so that you can get affordable rates and terms to pay off the dues. This will help you in saving the property and your credit won't get affected much.
Take care.
Sara,
Before you get inquirer too excited about modification (HAMP, I assume), you might mention some of the road blocks. Principal residence would appear to be the killer bee. Hardship and the 31% could come into play as well as credit enhancement and origination date.
Sounds as if the other partners sole reason for declining the obligation is decline in value.
Before you get inquirer too excited about modification (HAMP, I assume), you might mention some of the road blocks. Principal residence would appear to be the killer bee. Hardship and the 31% could come into play as well as credit enhancement and origination date.
Sounds as if the other partners sole reason for declining the obligation is decline in value.