Posted on: 15th Jul, 2010 11:18 am
I owe 569,000 on a house that woud sell between 475,00 to 520,000. My fico's are 730 ish . My base salary is 125,000 and have made 60-70,000 in bonus the last couple of years. The bonus is not guaranteed so I use my base when evaluating cashflow. I have a 5 year IO whicj will adjust in 5 months probably up to 5500.00 per month. As you can see I will not be able to afford this house much longer. Any suggestions? I would not mind honoring a difficiency if it were spread out over 10 years or so.
Welcome packman,
You can apply for a short sale in order to get rid of the property. In order to get your request accepted by the lender, you need to be delinquent on your mortgage payments for 2-3 months and convince him about your hardship. If the lender agrees for a short sale, then you would be able to sell off the property and would be liable for paying the deficient balance resulting from the sale. You can set up a payment plan with the lender in order to pay off the deficient balance. As far as your credit score is concerned, it would get lowered by 80-100 points.
You can apply for a short sale in order to get rid of the property. In order to get your request accepted by the lender, you need to be delinquent on your mortgage payments for 2-3 months and convince him about your hardship. If the lender agrees for a short sale, then you would be able to sell off the property and would be liable for paying the deficient balance resulting from the sale. You can set up a payment plan with the lender in order to pay off the deficient balance. As far as your credit score is concerned, it would get lowered by 80-100 points.
Thank You
If the re-payments of the deficiency were tax deductable and spread out over 30 years the investor would win,the borrower would be happy to move on to a more affordable home and the neighborhood would benefit since a foreclosure could be prevented.The drop of 80-100 points would recover soon enough.
Pick up another property, protect your credit, rent out the first property and write off any Loss in rental cash flow on your taxes. You need the write off anyway at that bracket.
That's a good idea---thank you