Posted on: 07th Nov, 2010 02:11 am
hello
i'm lost. i need some good advice. recently i lost my husband of 20 yrs.
he was the sole breadwinner, as i have medical problems. i put our home up for sale right away. in the meantime i have paid three mortgage payments at $2,000 each. i cannot afford to keep doing this, as i need to take the funds i have and move closer to family (for help) somewhere much cheaper to live. i'm in alameda county now, very exspensive to live here. we have a first mortgage and second mortgage (equity line of credit) the house is worth more than is owed. what should i do? i need to walk away, i cannot afford to give any money at all to the bank. should i do a deed of leiu and take a very hard hit on our (my) credit (excellent credit) or ask the bank to do a short sale. please explain the details of both, please let me know what to expect to happen with whatever decision i make. am i excempt from taxes, due to the loss of my husband? kathy
i'm lost. i need some good advice. recently i lost my husband of 20 yrs.
he was the sole breadwinner, as i have medical problems. i put our home up for sale right away. in the meantime i have paid three mortgage payments at $2,000 each. i cannot afford to keep doing this, as i need to take the funds i have and move closer to family (for help) somewhere much cheaper to live. i'm in alameda county now, very exspensive to live here. we have a first mortgage and second mortgage (equity line of credit) the house is worth more than is owed. what should i do? i need to walk away, i cannot afford to give any money at all to the bank. should i do a deed of leiu and take a very hard hit on our (my) credit (excellent credit) or ask the bank to do a short sale. please explain the details of both, please let me know what to expect to happen with whatever decision i make. am i excempt from taxes, due to the loss of my husband? kathy
hi kat,
it is your discretion whether or not you want to go for short sale or a deed in lieu of foreclosure. in case of a deed in lieu of foreclosure, your first lender will forgive the deficient amount resulting from the sale of the property. however, you'll be liable for paying off the balance amount back to the second lender. in case of a short sale, you'll be liable for paying off the deficient balance to both the lenders.
it is your discretion whether or not you want to go for short sale or a deed in lieu of foreclosure. in case of a deed in lieu of foreclosure, your first lender will forgive the deficient amount resulting from the sale of the property. however, you'll be liable for paying off the balance amount back to the second lender. in case of a short sale, you'll be liable for paying off the deficient balance to both the lenders.
short sales or deed of leiu are alternatives to foreclosure. Since the foreclosure of a credit score is terrible, almost anything is better than foreclosure, and that these two options result in a much clearer picture of the credit score.Be sure to get all promises in writing and review all documents received by a mortgage company with care. In my humble opinion, most homeowners have only an understanding and knowledge of the right to understand the short-selling and award instead of foreclosure, if the documents read. However, if the owner does not trust a mortgage company, ask the owner to have a lawyer to review these documents before signing.
In most cases lenders will want you to try to do a short sale and require the property be up for sale for so long, before they even consider doing a deed in lieu. You should check out the new government program Home Affordable Foreclosure Alternative HAFA, you can google a search and read up on the program it is specially for short sale and deed in lieu properties. They also have a nice incentive to move out if the lender accepts the HAFA program.
Remember to contact your lender and ask them what the requirements are. It will impact your credit regardless but not as bad as a straight foreclosure. Most importantly be proactive do some homework and no your options... GOOD LUCK! feel free to email or comment back.
Remember to contact your lender and ask them what the requirements are. It will impact your credit regardless but not as bad as a straight foreclosure. Most importantly be proactive do some homework and no your options... GOOD LUCK! feel free to email or comment back.