Posted on: 13th Jun, 2008 07:50 am
My husband just lost his job and apparently we won't be able to make the house payments, car payments and credit card payments. We literally just refinanced the house. 30 year fixed. We bought it in september of 06. We owe about 168,000 and the appraiser put it at 175,000. I know for a fact we won't get 175,000. I'm trying to figure what are best options would be. Deed in lieu or a short sale? Can someone please give me some advice. I'm so worried. I have done such a great job at keeping my credit score in the 700 and I know know matter what it's going to take a hit. I haven't defaulted on any payments yet and our 1st payment on the new loan isn't due till august but I would prefer to be prepared for the worse.
Hello Guest,
Welcome to the Forum,
I am terribly sorry to hear that your husband has lost his job. You have to decide amongst you and your husband if you want to lose your home or keep it. I know under these tough times it is a hard decision. However if you and husband want more than ever to keep your home, please try to do whatever you can to do so. Such as both trying to go out there and finding another job. In the mean while talk to your lenders and credit card companies about a hardship situation and what you can do to either lower monthly payment or get a deffered payment plan.
If you dont want to go out and work to save your home then Deed in Lieu of Foreclosure and shortsale will be better option over foreclosure but your credit score will still be affected. Look at all your options and take the best road. Fight for what is yours and dont give up.
Thanks and best of luck,
Jeanette Smith
Mortgage Planner
Union Mortgage Group
"www.umgva.com"
[Link deactivated as per the forum rules]
Welcome to the Forum,
I am terribly sorry to hear that your husband has lost his job. You have to decide amongst you and your husband if you want to lose your home or keep it. I know under these tough times it is a hard decision. However if you and husband want more than ever to keep your home, please try to do whatever you can to do so. Such as both trying to go out there and finding another job. In the mean while talk to your lenders and credit card companies about a hardship situation and what you can do to either lower monthly payment or get a deffered payment plan.
If you dont want to go out and work to save your home then Deed in Lieu of Foreclosure and shortsale will be better option over foreclosure but your credit score will still be affected. Look at all your options and take the best road. Fight for what is yours and dont give up.
Thanks and best of luck,
Jeanette Smith
Mortgage Planner
Union Mortgage Group
"www.umgva.com"
[Link deactivated as per the forum rules]
thanks for the advice. My husband is filing out applications as we speak. He has no college degree so it makes it extra hard to find another job. His profession that he just lost his job in can take several months to be hired due to the hiring process and that's if he even gets a job offer.
I'm also worried if he doesn't find something before we have to do a short sale or a deed in lieu of foreclosure that it will make it extra hard to find another job b/c most want to pull your credit when being hired.
Is that something we should be worried about too?
I'm also worried if he doesn't find something before we have to do a short sale or a deed in lieu of foreclosure that it will make it extra hard to find another job b/c most want to pull your credit when being hired.
Is that something we should be worried about too?
Well! if he is seeking a managment or accountant position, or some other top position there is a possibility his credit report history will affect his chances of being hired. At this point, contact your lenders about alternatives to shortsale and deed in lieu of foreclosure. Tell them you need help. As long as you sit down and watch everything slip out of your fingers then the battle is over.
Let us know if you have any other questions.
Good luck,
Jeanette Smith
Let us know if you have any other questions.
Good luck,
Jeanette Smith
Hi Guest and welcome to the Forum,
I familiar with you type of situation and have worked with many clients who ran into the same issue so don't feel bad. If you want to keep the home you do have options.
First option is a forebearance which is as follows.
This option is reserved for people who have a loss of job etc.
I would recommend going to Home-buddies.com thier is a FREE Mortgage Problem step by step guide that will definatley help you with your situation.
If you do not want to keep the home then a DIL or a short sale would be your option. A short sale is better because it does not affect your credit as bad. Below is a brief explanation.
Once again I recommend you get the FREE Mortgage Problem Guide at Home-buddies.com it will walk you through the whole process.
Good Luck and feel free to ask more questions as you work through this difficult time. We are here for you.
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I familiar with you type of situation and have worked with many clients who ran into the same issue so don't feel bad. If you want to keep the home you do have options.
First option is a forebearance which is as follows.
This option is reserved for people who have a loss of job etc.
I would recommend going to Home-buddies.com thier is a FREE Mortgage Problem step by step guide that will definatley help you with your situation.
If you do not want to keep the home then a DIL or a short sale would be your option. A short sale is better because it does not affect your credit as bad. Below is a brief explanation.
Once again I recommend you get the FREE Mortgage Problem Guide at Home-buddies.com it will walk you through the whole process.
Good Luck and feel free to ask more questions as you work through this difficult time. We are here for you.
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It's good that you've thought of it earlier than being late on payments. That's wise thinking on your part. Well, you can consider a short sale but are you willing to leave the property? How much will be left over if you can get somewhere around $170,000 from the sale? and do you think you can get to that figure?
Considering the credit effects, a short sale would be better than deed-in-lieu (dil) but you'll have to rent somewhere. Know more about credit effects of short sale and dil .
Regards,
Jessica.
Considering the credit effects, a short sale would be better than deed-in-lieu (dil) but you'll have to rent somewhere. Know more about credit effects of short sale and dil .
Regards,
Jessica.
Wow great discussion and great advice!
Hi Jessica the last post was me :P
Hi guest,
I feel you should consult a real estate agent and get an idea about how the market is likely to pay you for the house. Only then can you decide upon a short sale. After all, you'll have to pay for the house, the car and then there are the credit cards too! so, if you have to pay the deficiency after short sale, then not much will be left to pay for the car and cc debts. By the way, since it's a refinance, therefore you won't be able to avoid paying deficiency even if it's an anti-deficiency state. Anti-deficiency laws are applicable for purchase loans only.
Good luck
I feel you should consult a real estate agent and get an idea about how the market is likely to pay you for the house. Only then can you decide upon a short sale. After all, you'll have to pay for the house, the car and then there are the credit cards too! so, if you have to pay the deficiency after short sale, then not much will be left to pay for the car and cc debts. By the way, since it's a refinance, therefore you won't be able to avoid paying deficiency even if it's an anti-deficiency state. Anti-deficiency laws are applicable for purchase loans only.
Good luck
Always use the tools at your disposal!
The free advice above is great, especially regarding foreclosure and the like. BUT, COME ON, PEOPLE!!
First of all, you mention that AUGUST is crunch time -- not yesterday. Whatever comments you make about 'his profession', we all know that he's out there looking for work right now.
Good credit, like you state you have, is available to you -- if you have good credit, use it. Smart use of cash-advances from credit cards can save the day. August 30th is more than 60-days away. Research the credit cards you own, find the 0% or 3.99% cash-advance offer, and write yourself a check for 3-6 months mortgage payments, if you feel you need a cushion -- both in your checkbook and for sanity sake.
Remember, when the car dies, and you need a new car.....you act. Do the same now, and don't lie down and lose your house if you can avoid it.
On the other hand, if he's going to take unemployment for 52-weeks, you need to decide how much you want to keep your home.
The free advice above is great, especially regarding foreclosure and the like. BUT, COME ON, PEOPLE!!
First of all, you mention that AUGUST is crunch time -- not yesterday. Whatever comments you make about 'his profession', we all know that he's out there looking for work right now.
Good credit, like you state you have, is available to you -- if you have good credit, use it. Smart use of cash-advances from credit cards can save the day. August 30th is more than 60-days away. Research the credit cards you own, find the 0% or 3.99% cash-advance offer, and write yourself a check for 3-6 months mortgage payments, if you feel you need a cushion -- both in your checkbook and for sanity sake.
Remember, when the car dies, and you need a new car.....you act. Do the same now, and don't lie down and lose your house if you can avoid it.
On the other hand, if he's going to take unemployment for 52-weeks, you need to decide how much you want to keep your home.
