Posted on: 15th Sep, 2008 04:19 pm
we just recently refinanced our house out of a construction loan to a permanent loan (with a 3 year minimum commitment before refinancing) this last march and our current loan value was at 90% at the time of the loan.
my wife hasn't worked since july and we have been living off of our savings. we currently are about $500-$1000 short every month but we are still current with all our depts. unfortunately we are running out of savings and we are looking to be short on making a house payment in december or january.
we live in a rural area and homes have not been selling. we did the math and found we would save $1200+ a month if we move to the city next to my work (45 miles away). even thought we spent a lot of time remodeling the house it's still not 100% complete and we don't have the money to finish it.
we are not attached to the house and are looking to walk away from it. we don't want to foreclose and i can't keep the house payments up waiting for a short sale to happen. would a deed in lieu of foreclosure be our best option?
thanks
my wife hasn't worked since july and we have been living off of our savings. we currently are about $500-$1000 short every month but we are still current with all our depts. unfortunately we are running out of savings and we are looking to be short on making a house payment in december or january.
we live in a rural area and homes have not been selling. we did the math and found we would save $1200+ a month if we move to the city next to my work (45 miles away). even thought we spent a lot of time remodeling the house it's still not 100% complete and we don't have the money to finish it.
we are not attached to the house and are looking to walk away from it. we don't want to foreclose and i can't keep the house payments up waiting for a short sale to happen. would a deed in lieu of foreclosure be our best option?
thanks
Hi inthewoods,
Welcome to forums.
I understand that you need to walk away but instead of deed in lieu, you can try renting out the property. That could be a source of income for you and it will help you pay off the mortgage.
In case you think renting out will not be possible because you don't want to wait for long in the rural area, then, deed in lieu may be worth considering.
I believe the market in your area isn't good enough for homes to sell off fast, right? so, the lender may not be able to retrieve the total balance he owes. However, the best thing about deed in lieu is, you don't need to pay the deficiency, if any. However, you could end up paying taxes on the unpaid deficiency. Know more about tax consequences of deed in lieu .
Thanks
Welcome to forums.
I understand that you need to walk away but instead of deed in lieu, you can try renting out the property. That could be a source of income for you and it will help you pay off the mortgage.
In case you think renting out will not be possible because you don't want to wait for long in the rural area, then, deed in lieu may be worth considering.
I believe the market in your area isn't good enough for homes to sell off fast, right? so, the lender may not be able to retrieve the total balance he owes. However, the best thing about deed in lieu is, you don't need to pay the deficiency, if any. However, you could end up paying taxes on the unpaid deficiency. Know more about tax consequences of deed in lieu .
Thanks
Our area would not support the rent that I would need to cover the mortgage ... not even by 1/2. One thing we are worried about is getting charged with a deficiency but I think Washington State does not allow lenders to go after the balance. Does anyone know if this is true for our state?
Would a deed in lieu or a short sale qualify for the "Mortgage Forgiveness Debt Relief Act"
Thanks
Would a deed in lieu or a short sale qualify for the "Mortgage Forgiveness Debt Relief Act"
Thanks
If you have been through judicial foreclosure, then you will need to pay the deficiency when the lender asks for it. You may qualify for mortgage tax relief only when certain criteria are fulfilled. Check out the eligibility for mortgage tax relief.
A short sale or deed in lieu would not be considered judicial right?
If we plan on putting the house up for sale and move out to an apartment then would our old house still be considered primary... we lived in it for five years.
Also if we did put our house up for sale and moved out closer to my work we would most defiantly not make our mortgage payment. If the sale of the house and move out was coordinated with the bank would it still be considered abandonment?
If we plan on putting the house up for sale and move out to an apartment then would our old house still be considered primary... we lived in it for five years.
Also if we did put our house up for sale and moved out closer to my work we would most defiantly not make our mortgage payment. If the sale of the house and move out was coordinated with the bank would it still be considered abandonment?
Yes, if you simply walk away, it would be considered as abandonment. But if the house is sold off and the lender receives his dues, then it won't.
If you list the house for sale and do not keep on paying for the mortgage till the home is sold off, it will affect your credit.
I guess the house will be considered as your primary till it is sold off as you've stayed there for 5 years.
Take Care
If you list the house for sale and do not keep on paying for the mortgage till the home is sold off, it will affect your credit.
I guess the house will be considered as your primary till it is sold off as you've stayed there for 5 years.
Take Care