Posted on: 05th Jan, 2009 05:26 pm
Hoping someone could help? My new wife (i'm not on the mortgage) currently owes $95,000 in a 80/20 loan ($80,000 on the first and $15,000 on second). We want out of the house because the neighborhood is getting dangerous and most homes are now selling for $20,000. My wife can afford the house on her salary but doesn't want it. She's also pregnant! I own another home and have great credit and a great job. Can we get out of this house without her quitting her job? I'm thinking about trying a short sell first and file forclosere as the second option. What are your thoughts.
If you are in a financial position to afford the home, why not rent it out ? Even if you have to subsidize the payments somewhat, you achieve the objective of leaving the neighborhood. That way, your wife's credit won't be destroyed for several years from the bankruptcy or foreclosure, if you decide to stop paying for the mortgage.
In a situation like this, since you are not on the loan, only her credit will be impacted, so that is also a consideration in how you decide to proceed.
My advice is to always protect your credit, it takes a long time to recover from a major event like this. You'll pay more for any credit than can be obtained over the next several years, and creditors will raise the rates on current credit cards if the default occurs and the property goes to foreclosure.
All we can offer here are non specific suggestions, every situation is different. You would be best served in talking to an attorney who is familiar with both bankruptcy and real estate before you make a decision.
In a situation like this, since you are not on the loan, only her credit will be impacted, so that is also a consideration in how you decide to proceed.
My advice is to always protect your credit, it takes a long time to recover from a major event like this. You'll pay more for any credit than can be obtained over the next several years, and creditors will raise the rates on current credit cards if the default occurs and the property goes to foreclosure.
All we can offer here are non specific suggestions, every situation is different. You would be best served in talking to an attorney who is familiar with both bankruptcy and real estate before you make a decision.
Don't get a crooked lawyer...lousy loan mods..fight and turn the tables on your mortgage bank/company! Don't let them win. You can win!
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