Posted on: 12th Oct, 2009 10:54 pm
I have lost my income and will stop making payments on my residence. I have been using all of the money from a equityline from rental #1.
Rental #2 still has equity, but I can't borrow any more. I'm trying to sell my reidence, and rental #2.
If I sell rental #2, I can walk away with some money and give the residence back to the bank. Does this sound like a good option?
Rental #2 still has equity, but I can't borrow any more. I'm trying to sell my reidence, and rental #2.
If I sell rental #2, I can walk away with some money and give the residence back to the bank. Does this sound like a good option?
hi stanley,
you cannot simply give away the property to the bank. you will have to go in for a deed in lieu of foreclosure or a short sale. if you simply walkaway from your principal residence, then the lender would foreclose the property and you would be responsible for the deficient amount.
in my opinion, it is always better to go for a deed in lieu of foreclosure. though the credit effects would be same, however, you won't be liable for the deficient amount. similar to a foreclosure, it will lower your credit score by 250 points and will remain on your credit report for 7 years.
take care.
you cannot simply give away the property to the bank. you will have to go in for a deed in lieu of foreclosure or a short sale. if you simply walkaway from your principal residence, then the lender would foreclose the property and you would be responsible for the deficient amount.
in my opinion, it is always better to go for a deed in lieu of foreclosure. though the credit effects would be same, however, you won't be liable for the deficient amount. similar to a foreclosure, it will lower your credit score by 250 points and will remain on your credit report for 7 years.
take care.