Posted on: 02nd May, 2010 07:41 pm
I have a home in massachusetts that i bought in 2007, i currently rent it but the renters r not paying well. I own another home that i live in in illinois so 2 mortgages is getting very hard for me. should i walk away from the house in mass and let the bank foreclose and if i did will that effect the house i currently live in like a lien against it for the debt on foreclosed house in mass? also im not sure of the house value now but i know if i sold it right now it would for less then what i owe.
If you walkaway from the property, then the lender will foreclose it which will have a negative affect on your credit report. However, if the lender wants to place a lien on your property which is located in Illinois, then he will have to get a judgment from a court located in Illinois. There are chances that the lender will charge off the mortgage and a collection agency will collect the dues from you.
So im in over my head and they might put a lien on my current home in IL or send it to debt collection and make me pay for it? I just want to get rid of the house but i cant sell it without coming to the table with at least $30000 which i dont have. should i quitclaim my current house into my hubsands name and then walk away from the one in MA? then they would nt be able to put a lien on it.
you can apply for a deed in lieu of foreclosure with your lender. if the lender accepts your request of deed in lieu of foreclosure, you won't be liable for the deficient balance resulting from the sale.
how do i start a deed in lieu?
Hi La_bas_ai,
You need to write a hardship letter informing the lender about your financial situation and apply for a deed in lieu of foreclosure.
Thanks
You need to write a hardship letter informing the lender about your financial situation and apply for a deed in lieu of foreclosure.
Thanks