Posted on: 07th Apr, 2009 08:03 pm
I have been in default for 67 days. I owed more on the mortgage than the home was worth. I'm leaning towards letting go of the house and move one. what are my options?
HI, im really sorry about ur situation. Well you can just stop paying completely and it will eventually go into foreclosure. Have you tried to contact the lendor? Telling them ur situation? Loan mod? You can ask for a short sale if you qualify which would be a better choice then a foreclosure.
Hi confused,
As you are not interested to save the property, you should write a hardship letter and apply for a short sale or deed in lieu. It's the lender's discretion whether he would grant your request or not. He will judge your financial situation and then decide whether you can go for short sale or deed in lieu.
However, you should note that both deed in lieu and short sale will effect your credit report.
As you are not interested to save the property, you should write a hardship letter and apply for a short sale or deed in lieu. It's the lender's discretion whether he would grant your request or not. He will judge your financial situation and then decide whether you can go for short sale or deed in lieu.
However, you should note that both deed in lieu and short sale will effect your credit report.
Adonis is correct it will really have a impact on your credit score. If possible try to avoid going into foreclosure.
thanx adonis. another thing that i need some answer is regarding which one is the better between short sale or deed in lieu? i am really worried about paying the difference between the home value and the loan. thanx
Hi Guest,
If you want to save your credit score, then short sale is the best option for you. A short sale lowers your credit score by 80-100 points whereas a deed in lieu lowers it by 250 points. However, if a short sale, you are required to pay the deficient amount resulting from the sale of the property. In a deed in lieu, you are not required to pay this amount.
Thanks
If you want to save your credit score, then short sale is the best option for you. A short sale lowers your credit score by 80-100 points whereas a deed in lieu lowers it by 250 points. However, if a short sale, you are required to pay the deficient amount resulting from the sale of the property. In a deed in lieu, you are not required to pay this amount.
Thanks
Hello guest,
I would like add one point. letting the home go into foreclosure do not solve your problem. Since the value of property is less than mortgage, the bank has right to recover the outstanding amount even after foreclosure. check with the attorney.
I would like add one point. letting the home go into foreclosure do not solve your problem. Since the value of property is less than mortgage, the bank has right to recover the outstanding amount even after foreclosure. check with the attorney.