Posted on: 26th Nov, 2010 04:23 pm
i have a rental property that i need to get rid of. it needs work and i cannot get financing to do the work, and due to divorce, cannot afford to maintain the property myself any longer. i wanted to have the tenants move out and gut the place, or have just enough work done to make it more liveable, but either due to the economy or my divorce, i no longer qualify for financing to do this. i gave the tenants a move out notice because i do not feel safe keeping them there when i can't maintain the place.
here's the question: though the appraisal they just got (tenants were trying to buy it for what i owe, but they are having credit issues) is about 15k higher than what is owed on the house, no properties are selling in the area. i can't afford a commission so i can't list with a realtor. i believe i cannot sell it. what is my best course of action? do i request a deed in lieu of foreclosure? how willing are lenders to work with someone on this, and are they willing at all when it is not my residence? do i have to prove i am impoverished because i'm not but it would be a hardship to pay 24 more years of mortgage on a property i can't do anything with.
here's the question: though the appraisal they just got (tenants were trying to buy it for what i owe, but they are having credit issues) is about 15k higher than what is owed on the house, no properties are selling in the area. i can't afford a commission so i can't list with a realtor. i believe i cannot sell it. what is my best course of action? do i request a deed in lieu of foreclosure? how willing are lenders to work with someone on this, and are they willing at all when it is not my residence? do i have to prove i am impoverished because i'm not but it would be a hardship to pay 24 more years of mortgage on a property i can't do anything with.
hi ann,
you can directly sell off the property to your tenants rather than going for a deed in lieu of foreclosure. as there is equity in the property, the tenants can refinance the mortgage and pay off the loan. thus, you'll be able to get rid of the property as well as the mortgage.
thanks,
jerry
you can directly sell off the property to your tenants rather than going for a deed in lieu of foreclosure. as there is equity in the property, the tenants can refinance the mortgage and pay off the loan. thus, you'll be able to get rid of the property as well as the mortgage.
thanks,
jerry