Posted on: 10th Nov, 2009 02:57 pm
Hello:
Not sure whether my situation is unique or not but here is the story :-
My wife use to work near our house and I use to commute. In June she got laid off and found a temporary work near my work. Now we both are commuting like 35 miles each way which is making our life hell. We can easily pay our Mortgage and absolutely no issues but in next couple of months we would like to move to the place close to my work.
I bought this house in 2004 and made a 10% down payment. Since then I am paying regularly. I am almost 100 to 150K in negative and I would like to sell this house.
I know short sale is one option. Buying another house and then short selling is another option but not sure what route to go. I also thought about renting but the expenses-rent is going to leave me like $1000 out of my pocket every month.
Suggestions :(
Not sure whether my situation is unique or not but here is the story :-
My wife use to work near our house and I use to commute. In June she got laid off and found a temporary work near my work. Now we both are commuting like 35 miles each way which is making our life hell. We can easily pay our Mortgage and absolutely no issues but in next couple of months we would like to move to the place close to my work.
I bought this house in 2004 and made a 10% down payment. Since then I am paying regularly. I am almost 100 to 150K in negative and I would like to sell this house.
I know short sale is one option. Buying another house and then short selling is another option but not sure what route to go. I also thought about renting but the expenses-rent is going to leave me like $1000 out of my pocket every month.
Suggestions :(
Hi riteshseth!
Welcome to forums!
A short sale would reduce your credit score by 80-100 points. Moreover, you may become ineligible for getting a mortgage in the next 2-3 years. Meanwhile you can rent a property and improve your credit score. Then, you can apply for a mortgage to buy a home.
However, I would suggest you to contact lenders and check out if they are ready to give you another mortgage when you already have one. If they are ready for it, then you can first purchase a new property and then short sale the existing property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A short sale would reduce your credit score by 80-100 points. Moreover, you may become ineligible for getting a mortgage in the next 2-3 years. Meanwhile you can rent a property and improve your credit score. Then, you can apply for a mortgage to buy a home.
However, I would suggest you to contact lenders and check out if they are ready to give you another mortgage when you already have one. If they are ready for it, then you can first purchase a new property and then short sale the existing property.
Feel free to ask if you've further queries.
Sussane
Hi Sussane:
I am not sure whether lender is going to give me a loan or not. I still need to figure that out but let's say if I do get a loan then I read somewhere that even after Shortsale and lender forgives the amount then also they can come after you within 4 years of shortsale. Is it true?
During shortsale can lender also tap on my savings, 401K and other assets like car?
I am not sure whether lender is going to give me a loan or not. I still need to figure that out but let's say if I do get a loan then I read somewhere that even after Shortsale and lender forgives the amount then also they can come after you within 4 years of shortsale. Is it true?
During shortsale can lender also tap on my savings, 401K and other assets like car?
Hi Ritesh!
Welcome back to forums!
In a short sale, the lender does not forgive the deficient amount. He will claim the dues from you. If you cannot pay it off, the deficient balance would be charged off.
If you are unable to pay off the dues, the lender would be able to garnish your savings or your wages but will not garnish your retirement account. If the lender does not garnish or charge off the loan, then he may place a lien on your car.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
In a short sale, the lender does not forgive the deficient amount. He will claim the dues from you. If you cannot pay it off, the deficient balance would be charged off.
If you are unable to pay off the dues, the lender would be able to garnish your savings or your wages but will not garnish your retirement account. If the lender does not garnish or charge off the loan, then he may place a lien on your car.
Feel free to ask if you've further queries.
Sussane
Your situation is not unique, many families are experiencing the same hardship.
If you have to sell, then short sale would be your only option. How it will affect your credit and your ability to buy a home in the future will depend on your negotiations with your lender.
Some homeowners have had successful short sales where their lender reported paid as agreed to the credit bureaus. Doesn't happen often.
Whether or not you will be liable for the shortage will depend on whether or not you live in a recourse or non-recourse state.
You should check with a RE attorney to determine your potential liability. A word of caution even in non-recourse states if the home is no longer your primary residence you may be liable for the shortage.
Good Luck!
If you have to sell, then short sale would be your only option. How it will affect your credit and your ability to buy a home in the future will depend on your negotiations with your lender.
Some homeowners have had successful short sales where their lender reported paid as agreed to the credit bureaus. Doesn't happen often.
Whether or not you will be liable for the shortage will depend on whether or not you live in a recourse or non-recourse state.
You should check with a RE attorney to determine your potential liability. A word of caution even in non-recourse states if the home is no longer your primary residence you may be liable for the shortage.
Good Luck!
I'm trying to sell it isn a short sale but have no luck.
My family and i have moved to new jersey and we left the florida house.
I left Flordia for employment relocation.
I've had the house on the market since september 2010.
I paid 300k 2005 no money down got a 20/80 mortage and moved the 20% to a credit card when variable rates started going up.
what should i do. What are the repercusions to come. :(
My family and i have moved to new jersey and we left the florida house.
I left Flordia for employment relocation.
I've had the house on the market since september 2010.
I paid 300k 2005 no money down got a 20/80 mortage and moved the 20% to a credit card when variable rates started going up.
what should i do. What are the repercusions to come. :(
Hi Dannie,
It will be better if you could apply for a deed in lieu of foreclosure in order to sell off the property located in Florida. Though it will reduce your credit scores by 250 points, you won't be liable for paying any deficient balance to the lender.
Thanks
It will be better if you could apply for a deed in lieu of foreclosure in order to sell off the property located in Florida. Though it will reduce your credit scores by 250 points, you won't be liable for paying any deficient balance to the lender.
Thanks