Posted on: 12th Mar, 2009 07:40 am
I own a house in mass and moved to florida for a job. I owe 220k and the realtor said I need to lower it to 185k. my company will cover down to 199k which is what it is currently listed at. I have a security clearance so foreclosing might risk losing my clearance and or job. I can't take out a personal loan because I don't think I will qualify to make up the difference. I have student loans (33k) and other debts (20k) so that is why I wouldn't qualify for a personal loan. I currently make 58k per year and my mortgage is 1705 month, rent is 1000 a month. I have three kids and a wife to support also. I have excellent credit now and I would hate to waste it. Are there any options I can explore to get out of this house and stay as debt free as possible?
Hi maynardn,
In my opinion, selling the property is the best option for you. You have mentioned that you cannot pay the deficient amount resulting from the sale of the property. In that case, deed in lieu is the best option for you. But, a deed in lieu will badly affect your credit score and lower it by 250 points.
If you do not want to ruin your credit score, then you can go for a short sale. In a short sale, your credit score will be lowered by 75-100 points but you will have to pay the deficient amount resulting from the sale of the property.
Thanks
In my opinion, selling the property is the best option for you. You have mentioned that you cannot pay the deficient amount resulting from the sale of the property. In that case, deed in lieu is the best option for you. But, a deed in lieu will badly affect your credit score and lower it by 250 points.
If you do not want to ruin your credit score, then you can go for a short sale. In a short sale, your credit score will be lowered by 75-100 points but you will have to pay the deficient amount resulting from the sale of the property.
Thanks