Posted on: 17th Dec, 2008 09:37 pm
My husband and I need to relocate for work by 4800 miles (Hawaii to the DC area) in 3 months. We're exploring all of our options but are unsure how to proceed.
Here are some facts about our situation, which seems somewhat unique compared to what I've seen on message boards.
• We are currently able to make payments without a problem, however, my husband's salary will decrease by 30% when we move.
• We owe roughly 90K more than the house is currently worth.
• My husband bought the house 3 years ago before we were married. My name is not on anything.
• Upon talking to our bank they are refusing to even consider a short sale and would rather foreclose. They don't even want to talk to us because we aren't behind on our payments.
• Current rent in our area is $2000 less than our monthly mortgage payment.
• We're already at 5%, so a modification is out of the question.
We're at a bit of a loss. It seems like there's no help out there for us. We hate the idea of foreclosing, because we are willing to do what we can to not have to go that route. The biggest problem is that we'll obviously need a place to live when we move. We're willing to rent the house out, but that would mean finding an apartment for less than $1000 in or around DC... impossible unless you're in a really bad area.
Any ideas? Thanks ahead of time!
Here are some facts about our situation, which seems somewhat unique compared to what I've seen on message boards.
• We are currently able to make payments without a problem, however, my husband's salary will decrease by 30% when we move.
• We owe roughly 90K more than the house is currently worth.
• My husband bought the house 3 years ago before we were married. My name is not on anything.
• Upon talking to our bank they are refusing to even consider a short sale and would rather foreclose. They don't even want to talk to us because we aren't behind on our payments.
• Current rent in our area is $2000 less than our monthly mortgage payment.
• We're already at 5%, so a modification is out of the question.
We're at a bit of a loss. It seems like there's no help out there for us. We hate the idea of foreclosing, because we are willing to do what we can to not have to go that route. The biggest problem is that we'll obviously need a place to live when we move. We're willing to rent the house out, but that would mean finding an apartment for less than $1000 in or around DC... impossible unless you're in a really bad area.
Any ideas? Thanks ahead of time!
Hi!
Welcome to forums!
Lenders do not agree for a deed in lieu, short sale or a loan modification until you are past due on your payments for at least 1 month. As you have mentioned that you are current on your payments so the lender is not ready for a deed in lieu.
Did you inform the lender that you will be relocating for work? I think you can inform the lender about this and may be the lender considers your case. But you should remember that a deed in lieu will affect your credit similarly as a foreclosure. Both of these processes will decrease your credit score by 250 points. Only in case of deed in lieu, the deficient amount resulting from the sale of the property is forgiven by the lender. Moreover you will also have to pay taxes on the forgiven amount.
As far as short sale is considered, it will also affect your credit score by 75-100 points. However, in a short sale, the deficient amount is not forgiven and you will have to pay it to the lender. I don't think renting the property will be a good option as the market in your area is not good.
In my opinion you should speak to lender and inform him about your hardship and relocation. I think he will consider your case. Also you have mentioned that your name is not on the loan. This means your credit score will not be affected if the property goes into a deed in lieu, short sale or foreclosure.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Lenders do not agree for a deed in lieu, short sale or a loan modification until you are past due on your payments for at least 1 month. As you have mentioned that you are current on your payments so the lender is not ready for a deed in lieu.
Did you inform the lender that you will be relocating for work? I think you can inform the lender about this and may be the lender considers your case. But you should remember that a deed in lieu will affect your credit similarly as a foreclosure. Both of these processes will decrease your credit score by 250 points. Only in case of deed in lieu, the deficient amount resulting from the sale of the property is forgiven by the lender. Moreover you will also have to pay taxes on the forgiven amount.
As far as short sale is considered, it will also affect your credit score by 75-100 points. However, in a short sale, the deficient amount is not forgiven and you will have to pay it to the lender. I don't think renting the property will be a good option as the market in your area is not good.
In my opinion you should speak to lender and inform him about your hardship and relocation. I think he will consider your case. Also you have mentioned that your name is not on the loan. This means your credit score will not be affected if the property goes into a deed in lieu, short sale or foreclosure.
Feel free to ask if you have further queries.
Sussane
My husband just retired after 20 yrs of military service and our plans were to sell the house we live in and move to my home town in TN. We bought 25 acres of land 17 yrs ago and have since paid it off. We have the land but it is undeveloped , the well, driveway, septic, electric would need to be put in before we can build on it. He took a decent paying job in Tn working for Norfolk Southern. He is living with my parents at the moment, and the children and I are in Ga. trying to sell our house here. The house has been on the market for 6 months with no sell. We still owe on this house, have credit card debt, and a $10,000 equity loan, and a car payment, etc. With his two checks and me being unemployed still , we live paycheck to paycheck. Needless to say, my husband is living with my parents for now because we cannot afford two mortgage payments or renting another place. He is miserable living with my parents, we are miserable being separated from him. Our real estate contract is about to expire and I'm not sure if we should renew it with the same agent or just try and rent the house out. I'm afraid that it won't sell. I'm afraid if it stays on the market longer, we will not get a fair market value. And I'm afraid if we rent it out, the renters could ruin it or we may get stuck with paying the mortgage if they don't pay it. We just don't know what to do at this point! We thought the house would sell very quick because of its location near the military base. Most military people want to be close to the base. Many of the other homes that were for sale in our neighborhood are renting now. Since they are now renting, does this increase our chance of selling? Our plans were to sell this home, pay off some debt, and buy another home in Tn. Then after he retires from the railroad, sell that home and build our retirement home on the mountain. We considered just putting a mobile home on the mountain (instead of buying a home first) but the commute would be very hard on my husband for the next 20 yrs, not to mention costly in gas. I am tired of being a single parent for now and very frustrated that our family once again is seperated. I thought we were past that since he was retired and our lives could be more stable. What would you recommend at this depressing time with our economy the way it is? Rent or keep it on the market?
I'm not so sure the economy is the problem with the selling of the house. It coud be the agent. My husbands friend is our agent and I just don't believe he is very good at his job. His wife has sold real estate for about 5 yrs and he just started last year. I didn't want to go with a friend, but my husband wanted too. Her husband has not stepped a foot in our house to show it since we signed the contract with him. His wife has shown it 3 times in 6 months. Its gotten more viewings from other real estate agents than our own agent. We almost sold it twice and each time we took our agents advice about the counter offers, the people walked away. The first offer was for $101,000 cash, he told us to counter offer $104,000. He said if they have that much cash, they can do it. They walked away from it. Then the second time we had come down to $100,000 and us paying $3,000 in closing cost. The buyers wanted us to go lower on the price. Our agent "friend" told us when we signed the contract with him, if it came down to making or breaking a deal within $1,000 or less, he would knock off some of his commission. Well, he didn't do as he promised and the people walked away on that deal also. We started out selling our house at $106,900. Now we have dropped it to $102,500. The tax assessment for our house is $90,018 for 2008. I thought our pricing was in a good range because we have many upgrades to our house compared to others. We have added new vinyl siding, tile flooring in all wet areas, laminate flooring in the living & dining, new carpet in all bedrooms, and just put in a new heating/Air unit this past summer, new dishwasher. We also painted the whole interior and changed out the lighting fixtures. The house looks new! Our neighbors house sold for $103,000 last year, and trust me, it looked like it had been lived in for 13 yrs. Are we over pricing it?
On top of all this, my father passed away last year and I'm in charge of selling his house also. His house has not sold either. The last deal I had with it , the contract was signed and they were about to close on it when the couples husband lost his job because the company went out of business. Needless to say, the bank dropped his loan. If either of these homes would just sell, we would have a very good down payment for another home. That brings me to my next question. If our house does sell, should I just rent until my fathers home sells so we have a larger down payment for the next house? I am so so so confused! Please help!
Sharon
I'm not so sure the economy is the problem with the selling of the house. It coud be the agent. My husbands friend is our agent and I just don't believe he is very good at his job. His wife has sold real estate for about 5 yrs and he just started last year. I didn't want to go with a friend, but my husband wanted too. Her husband has not stepped a foot in our house to show it since we signed the contract with him. His wife has shown it 3 times in 6 months. Its gotten more viewings from other real estate agents than our own agent. We almost sold it twice and each time we took our agents advice about the counter offers, the people walked away. The first offer was for $101,000 cash, he told us to counter offer $104,000. He said if they have that much cash, they can do it. They walked away from it. Then the second time we had come down to $100,000 and us paying $3,000 in closing cost. The buyers wanted us to go lower on the price. Our agent "friend" told us when we signed the contract with him, if it came down to making or breaking a deal within $1,000 or less, he would knock off some of his commission. Well, he didn't do as he promised and the people walked away on that deal also. We started out selling our house at $106,900. Now we have dropped it to $102,500. The tax assessment for our house is $90,018 for 2008. I thought our pricing was in a good range because we have many upgrades to our house compared to others. We have added new vinyl siding, tile flooring in all wet areas, laminate flooring in the living & dining, new carpet in all bedrooms, and just put in a new heating/Air unit this past summer, new dishwasher. We also painted the whole interior and changed out the lighting fixtures. The house looks new! Our neighbors house sold for $103,000 last year, and trust me, it looked like it had been lived in for 13 yrs. Are we over pricing it?
On top of all this, my father passed away last year and I'm in charge of selling his house also. His house has not sold either. The last deal I had with it , the contract was signed and they were about to close on it when the couples husband lost his job because the company went out of business. Needless to say, the bank dropped his loan. If either of these homes would just sell, we would have a very good down payment for another home. That brings me to my next question. If our house does sell, should I just rent until my fathers home sells so we have a larger down payment for the next house? I am so so so confused! Please help!
Sharon
My name is not there in the mortgage. We would like to short sale our house. My husband has a job and all the loans are on his name.
Is there anyway we could transfer the mortgage to my name and then short sell. I do not have a job right now.
Is there anyway we could transfer the mortgage to my name and then short sell. I do not have a job right now.
hi
you can transfer the mortgage to your name. but you'll have to refinance the current mortgage in your name. through the refinance the mortgage liability can be transferred to you. since you do not have a job right now, the lender will not allow you to refinance.
you can transfer the mortgage to your name. but you'll have to refinance the current mortgage in your name. through the refinance the mortgage liability can be transferred to you. since you do not have a job right now, the lender will not allow you to refinance.
first? i am going to have to get out of this house, b/c i cannot afford it. Never should have had a loan in the first place! hello Countrywide, hello massive debt/dust bowl of 2010!
my question is, do I go ahead and rent an apartment? I tell the rental agents straight up that I am going to put the house on the market and/or let it go short sale. I am wondering if this will work? Will they drag me out? They don't say it won't work. I have no evictions, bankruptcy. That's all they seem to care about.
please help.
lauren
my question is, do I go ahead and rent an apartment? I tell the rental agents straight up that I am going to put the house on the market and/or let it go short sale. I am wondering if this will work? Will they drag me out? They don't say it won't work. I have no evictions, bankruptcy. That's all they seem to care about.
please help.
lauren
Hi lauren!
Welcome to forums!
You can rent an apartment for yourself before you place your property in th market. If you can afford the rent payments, then I don't think placing the property in the market will matter much.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can rent an apartment for yourself before you place your property in th market. If you can afford the rent payments, then I don't think placing the property in the market will matter much.
Feel free to ask if you've further queries.
Sussane
It was me above! :-) Just forgot to login...
i live with my partner and he has a mortgage in his name .i have 3 children and i want to go and live near my mum and dad but i am unable to work and pay the rent my husband doesn't wants to put the house on sale , can i claim housin benefit?
my home was purchased before I was married and is in my name only. Now married we want out of this place. We owe 20 grand more than its worth. Can we let this place forclose because its only in my name and then go buy a house in his name/ credit only? Is this a good idea?
hi shab,
you need to contact the state housing authority and check out if they can help you with housing benefit.
to cg,
rather than letting the property foreclosed by the lender, you can apply for a deed in lieu of foreclosure. if the lender agrees to it, you'll be able to get rid of the property and won't be liable for the balance amount resulting from the sale.
thanks
you need to contact the state housing authority and check out if they can help you with housing benefit.
to cg,
rather than letting the property foreclosed by the lender, you can apply for a deed in lieu of foreclosure. if the lender agrees to it, you'll be able to get rid of the property and won't be liable for the balance amount resulting from the sale.
thanks