Posted on: 24th Dec, 2008 07:39 pm
i tried posting a question before but cannot find it... so i am trying again.
we have two homes. husband was offer a job in another state making more money. one was on the market and got a contract that ended up falling thru at the last minute but bought a new home in the new state. now we have two homes. ended up having to rent the other out but still have a balance to pay on that mortgage. we are extremely tight on money. plus the new job changed medical insurance company and it is costing us a lot of money upfront of which we only we reimbursed for half. we have been constantly late on the 2nd home but not over 30 days. mostly 26-28 days late. we don't know what to do. we consulted with a financial advisor but they really were not able to help and actually suggested we refinance the 1st home and take out a home equity loan. ?? we need to sell it... why would i add more to the loan when the home value has dropped?? plus realtor fees are hanging us up on the sales price. we are trying to deal with our lender but it is taking forever. both homes are now on the market. we had the 1st home on for 9 mon. and nothing. this home has been on for 4 and nothing. i feel like we are throwing money in to an empty pit and will never see any of it again. we want out. we are barely keeping our heads above water. please someone offer some suggestions....
we have two homes. husband was offer a job in another state making more money. one was on the market and got a contract that ended up falling thru at the last minute but bought a new home in the new state. now we have two homes. ended up having to rent the other out but still have a balance to pay on that mortgage. we are extremely tight on money. plus the new job changed medical insurance company and it is costing us a lot of money upfront of which we only we reimbursed for half. we have been constantly late on the 2nd home but not over 30 days. mostly 26-28 days late. we don't know what to do. we consulted with a financial advisor but they really were not able to help and actually suggested we refinance the 1st home and take out a home equity loan. ?? we need to sell it... why would i add more to the loan when the home value has dropped?? plus realtor fees are hanging us up on the sales price. we are trying to deal with our lender but it is taking forever. both homes are now on the market. we had the 1st home on for 9 mon. and nothing. this home has been on for 4 and nothing. i feel like we are throwing money in to an empty pit and will never see any of it again. we want out. we are barely keeping our heads above water. please someone offer some suggestions....
Hi Ebbie,
In my opinion, you should contact the lender again and check out the options of short sale or a deed in lieu foreclosure. But again you should note that lender will consider the above options only if you are at least 1 month late on payments.
Both short sale and deed in lieu are similar processes wherein you will have to give away the property to the lender who will sell it in the market and recover the debts. However, there may remain a deficient amount from the sale of the property. In case of a deed in lieu foreclosure, this deficient amount is forgiven and in case of short sale, you will have to pay the deficient amount to the lender.
Apart from this, you can also check the following link to know various other ways to avoid foreclosure:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Wish you a Merry Christmas.
Thanks
In my opinion, you should contact the lender again and check out the options of short sale or a deed in lieu foreclosure. But again you should note that lender will consider the above options only if you are at least 1 month late on payments.
Both short sale and deed in lieu are similar processes wherein you will have to give away the property to the lender who will sell it in the market and recover the debts. However, there may remain a deficient amount from the sale of the property. In case of a deed in lieu foreclosure, this deficient amount is forgiven and in case of short sale, you will have to pay the deficient amount to the lender.
Apart from this, you can also check the following link to know various other ways to avoid foreclosure:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Wish you a Merry Christmas.
Thanks
ebbie, a short sale would seem to be in order with your previous home - i agree with jameshogg's commentary.
however, if you are able to accomplish that in a reasonable period of time (while maintaining as best you can on everything!), why would that also necessitate the sale of your current home? wouldn't being out from under that burden ease your pain on the current home? i understand, of course, that carrying both at this time is a major strain - just wondering if the strain would be eased sufficiently once the prior home was out of the way.
clearly, you want to avoid defaulting on either of these loans, as that will have a definitively negative effect on your credit.
definitely contact the lender on the first home and discuss your needs - you mentioned realtor fees also. have you been paying realtor fees? i'd be surprised to find out that you are. perhaps, if your contract with existing realtors has expired or will do so soon, you may want to check with others. keep in mind that the more information you're willing to give to your realtor, the better. your realtor absolutely needs to know if you'll be forced into a short sale, so don't let pride get in the way of honesty.
i don't necessarily have any other suggestions at this point, but hope that you'll escape from the situation you're in soon.
however, if you are able to accomplish that in a reasonable period of time (while maintaining as best you can on everything!), why would that also necessitate the sale of your current home? wouldn't being out from under that burden ease your pain on the current home? i understand, of course, that carrying both at this time is a major strain - just wondering if the strain would be eased sufficiently once the prior home was out of the way.
clearly, you want to avoid defaulting on either of these loans, as that will have a definitively negative effect on your credit.
definitely contact the lender on the first home and discuss your needs - you mentioned realtor fees also. have you been paying realtor fees? i'd be surprised to find out that you are. perhaps, if your contract with existing realtors has expired or will do so soon, you may want to check with others. keep in mind that the more information you're willing to give to your realtor, the better. your realtor absolutely needs to know if you'll be forced into a short sale, so don't let pride get in the way of honesty.
i don't necessarily have any other suggestions at this point, but hope that you'll escape from the situation you're in soon.
