Posted on: 31st Jan, 2013 01:04 am
We want to get rid of our present house. Thus trying to sell off the home for the past 1 year. It was appraised for 424k 2 years back. We have lowered the price to 298k last year though we still owe 318k on it. In this situation, will it be wise to walk away from the property? Any advise will be helpful.
if you walkaway from the property, then you will face foreclosure which will have a severe negative impact on your credit situation. it will be better if you could surrender the property to the lender and apply for a deed in lieu of foreclosure. though your credit will be impacted, you won't be liable for paying the deficient balance.
Hi WilliamsJ,
You can even contact the lender and apply for a short sale. If the lender agrees to it, then you can get rid of the property. But you may be liable for paying the deficient balance. It should also be noted here that a short sale will lower your scores by only 80-100 points whereas a deed in lieu of foreclosure will lower the scores by 200-250 points.
Thanks
You can even contact the lender and apply for a short sale. If the lender agrees to it, then you can get rid of the property. But you may be liable for paying the deficient balance. It should also be noted here that a short sale will lower your scores by only 80-100 points whereas a deed in lieu of foreclosure will lower the scores by 200-250 points.
Thanks