Posted on: 29th Nov, 2010 07:36 pm
We bought a house in Phoenix in Jun'07, mortgage in name of my wife, house in name of both. In Jun'10 wife got laid off and after a month she found a job in LA, now renting apartment, while I live in Phoenix home. Now in Nov'10 I lost my job. We are under water by $70k currently. So far we made on time payments and we are current as of now. We made payments both on house in PHX and rent in LA. But starting next year situation may change, I hope to find a job soon but could take 2-3 months in this market, moreover I am now seeking job in LA so that we can stay together. Our credit score is above between 700-750 and we both are in late 30s. I hope to find job in LA and then we would like to buy a house in LA by Jun'11 and settle there. Looking for right advice. Thank you and kind regards.
Hi hemanghome!
Welcome to forums!
Your wife will have to sell off the property that you have in Phoenix in order to buy a house in Los Angeles. Unless your wife sells off the property and repays the mortgage in full, she won't be able to get another mortgage in her name. However, as your name is not mentioned on the mortgage, you will be able to get a mortgage to buy a property in Los Angeles if you meet the required criteria of the lender.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your wife will have to sell off the property that you have in Phoenix in order to buy a house in Los Angeles. Unless your wife sells off the property and repays the mortgage in full, she won't be able to get another mortgage in her name. However, as your name is not mentioned on the mortgage, you will be able to get a mortgage to buy a property in Los Angeles if you meet the required criteria of the lender.
Feel free to ask if you've further queries.
Sussane
thanks sussane for your response. we are $70k underwater on phx house, and i don't have my job anymore, even mortgage payments in next few months is going to be difficult, there is no way we can sell the house and mortgage in full. what alternatives are available? a friend of mine suggested to stop paying and send a letter to mortgage servicer requesting deed in lieu of foreclosure, is that a good idea? thanks again if you can respond back.
Hi Hemang,
If you do not want to keep the property, then you can apply for a deed in lieu of foreclosure. This will help you in selling off the home and getting rid of the mortgage. You will not remain liable for paying off the deficient mortgage balance in order to pay off the dues. But it will have a negative affect on your credit report and lower your scores by 250 points.
Thanks
If you do not want to keep the property, then you can apply for a deed in lieu of foreclosure. This will help you in selling off the home and getting rid of the mortgage. You will not remain liable for paying off the deficient mortgage balance in order to pay off the dues. But it will have a negative affect on your credit report and lower your scores by 250 points.
Thanks
hi jameshogg, thanks for your reply. if the mortgage was in my name, will my wife's credit score also be affected?
i would like to keep house, refinance it to lower affordable mortgage payments but house is under water over 125% and i don't have funds to pay down to get refinanced. is there a way to bring down the payments to something affordable? i am not late and don't want to be late in payments, but without job will run me out of money in 2 months. appreciate your advice!
i would like to keep house, refinance it to lower affordable mortgage payments but house is under water over 125% and i don't have funds to pay down to get refinanced. is there a way to bring down the payments to something affordable? i am not late and don't want to be late in payments, but without job will run me out of money in 2 months. appreciate your advice!
Hi Hemang!
Welcome to forums!
If your wife's name is not mentioned on the mortgage doc, then the lender will not be able to come after your wife to recover his dues. You will be liable for the payment. You will have to contact your lender and check if he can help you in saving the property. You can apply for a loan modification if you wish to save your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your wife's name is not mentioned on the mortgage doc, then the lender will not be able to come after your wife to recover his dues. You will be liable for the payment. You will have to contact your lender and check if he can help you in saving the property. You can apply for a loan modification if you wish to save your property.
Feel free to ask if you've further queries.
Sussane
Hi Sussane, my house is in Arizona, and I am told legally lenders cannot come after personal finances anyways. is that not true? But my question was if I was sole borrower and if i do Deed in lieu of foreclosure, my credit history will be affected, would my wife history also be affected?
Thanks
Hemang.
Thanks
Hemang.
Hi Hemang,
Arizona is an anti-deficiency state. In such a case, the lender will not be able to come after you in order to recover his balance dues if he forecloses on your property.
However, the foreclosure or the deed in lieu of foreclosure will definitely have a negative affect on your credit report. It will reduce your credit scores by 250 points.
Arizona is an anti-deficiency state. In such a case, the lender will not be able to come after you in order to recover his balance dues if he forecloses on your property.
However, the foreclosure or the deed in lieu of foreclosure will definitely have a negative affect on your credit report. It will reduce your credit scores by 250 points.
if I was sole borrower and if i do Deed in lieu of foreclosure, my credit history will be affected, would my wife history also be affected?
Hi Hemang,
If you're the sole borrower of the mortgage and go for a deed in lieu of foreclosure, it'll not affect your wife's credit report in any way.
Thanks
If you're the sole borrower of the mortgage and go for a deed in lieu of foreclosure, it'll not affect your wife's credit report in any way.
Thanks
If I am current on mortgage but after layoff cannot pay mortgage in full, what is best thing to do for underwater mortgage? Request loan modification or Send in keys with Deed in lieu..?
Thank you!
Thank you!
Welcome Hemang,
If you want to save your property, then it will be better to contact the lender and apply for a loan modification. The lender will go through your financial situation and let you know whether or not he will accept your request. If you don't want to save the property, then you should apply for a deed in lieu of foreclosure.
If you want to save your property, then it will be better to contact the lender and apply for a loan modification. The lender will go through your financial situation and let you know whether or not he will accept your request. If you don't want to save the property, then you should apply for a deed in lieu of foreclosure.