Posted on: 08th Jan, 2010 11:56 am
I bought my condo in 2007 with a 1st 30 year interest only and a 2nd 30 year conventional. Currently I am about $12,000 in the hole. I would like to move, but I can't afford to pay the bank 12K if I try to sell.
What are my options???
Would it be worth a credit hit if I did a forclosure or a short sale? I don't plan on buying again for a few years.
What are my options???
Would it be worth a credit hit if I did a forclosure or a short sale? I don't plan on buying again for a few years.
hi kiraregester,
you've mentioned that you do not plan to buy a property soon. in that case, i would suggest you to go for a deed in lieu of foreclosure. this will help you sell off the property. however, you won't be responsible for deficient amount resulting from the first mortgage. the second lender will be able to collect the dues from you after the sale of the property. you'll have to negotiate with him and get an affordable payment plan to pay off the dues. you should remember that a deed in lieu of foreclosure will lower your credit score by 250 points.
thanks
you've mentioned that you do not plan to buy a property soon. in that case, i would suggest you to go for a deed in lieu of foreclosure. this will help you sell off the property. however, you won't be responsible for deficient amount resulting from the first mortgage. the second lender will be able to collect the dues from you after the sale of the property. you'll have to negotiate with him and get an affordable payment plan to pay off the dues. you should remember that a deed in lieu of foreclosure will lower your credit score by 250 points.
thanks