Posted on: 22nd Mar, 2010 07:14 pm
We have lost all the equity in our home. It is unlikely that it will ever return all things considered.
Currently we have a mortgage balance of 134,000 but the bank tells us that the home's value is about 125.000.
We originally bought the house in 1987 for 75,000 with 10,000 down. Obviously we have refinaced a few times for pactical purposes.
We'd like to sell but its unlikely we could get more than we owe, prpbably 10k or more less.
Were tired of this house and would like to move on.
I wonder about short sale or a deed in leiu of forclosure. Neither one seems to fit. The othe resort, the "jingle letter" seems to be frought with difficulties.
What to you reccomend?
Currently we have a mortgage balance of 134,000 but the bank tells us that the home's value is about 125.000.
We originally bought the house in 1987 for 75,000 with 10,000 down. Obviously we have refinaced a few times for pactical purposes.
We'd like to sell but its unlikely we could get more than we owe, prpbably 10k or more less.
Were tired of this house and would like to move on.
I wonder about short sale or a deed in leiu of forclosure. Neither one seems to fit. The othe resort, the "jingle letter" seems to be frought with difficulties.
What to you reccomend?
Hi cbrogan,
As you want to sell off the property, you should list it in the market and check out if you can get buyers for the property. In my opinion, you can contact your lender and apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for the deficient amount resulting from the sale of the house. However, it will have a negative effect on your credit report as your score would get decreased by 250 points.
Thanks
As you want to sell off the property, you should list it in the market and check out if you can get buyers for the property. In my opinion, you can contact your lender and apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for the deficient amount resulting from the sale of the house. However, it will have a negative effect on your credit report as your score would get decreased by 250 points.
Thanks
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"In my opinion, you can contact your lender and apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for the deficient amount resulting from the sale of the house. However, it will have a negative effect on your credit report as your score would get decreased by 250 points."
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What is the recovery period on the 250 point hit to your credit score? 7Yrs?
"In my opinion, you can contact your lender and apply for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for the deficient amount resulting from the sale of the house. However, it will have a negative effect on your credit report as your score would get decreased by 250 points."
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What is the recovery period on the 250 point hit to your credit score? 7Yrs?
Hi Guest!
Welcome to forums!
Deed in lieu of foreclosure will remain in your credit report for the next 7 years. It will reduce your credit score but with time, if you take the required steps, you will be able to increase your credit score. You can check out the given page in order to note some tips which will help you in improving your credit scores: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Deed in lieu of foreclosure will remain in your credit report for the next 7 years. It will reduce your credit score but with time, if you take the required steps, you will be able to increase your credit score. You can check out the given page in order to note some tips which will help you in improving your credit scores: http://www.mortgagefit.com/credit-rating/credit-repair.html .
Feel free to ask if you've further queries.
Sussane