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Stop payments for short sale - Should I go for this option?

Posted on: 27th Mar, 2008 07:50 am
Hello,
I am planning on stopping payments to expedite a short sale for my Primary home from next month. I have a propertytax bill as well that is due early next month. Should I be paying the Property Tax to protect myself or Can I just ignore it?
I have 1st loan with INGDirect and I dont have a second loan. This is refinanced mortgage. I am upside down on the price. Bought it 2 years ago and the price is 180K less than I owe to bank. My commute is 3-4 hours daily and this is stressing me. I am not sure of lender would let me do a short sale as the difference is over 180K. Should I stop payments before even bringing this with the lender and talk to them about short sale once they contact me? what happens if i stop making payments while trying to get a short sale?
I have 401K, cars and future paychecks from work. Since, I dont have 2nd mortgage, am I protected in terms of these?
Thanks for your help..
That will depnds on lot of facotrs Your income, credit score and also Debt to incoem ratio alogn with your job history.

If you can provide more details, we may be able to give you a better answer
Posted on: 19th Aug, 2009 08:11 pm
Lucy

Welcoem to the forum

You will need to provide more detaisl like your Income, credit score and any toerh commitmens (Financial) alogn with yoru job history.

That will help to provide you with a better suggestion

Good luck and feel free to ask
Posted on: 19th Aug, 2009 08:49 pm
i stop paying my mortgage for 8months now and the lender has not set up a sell date yet, what should i do in this case?
Posted on: 30th Aug, 2009 03:01 am
Probably you can waiti until you get that final notice and enjoy the hhouse with no rent
Posted on: 30th Aug, 2009 06:17 pm
hi, i am approved to do a short sale and will not be missing any payments at all leading up to the sale of the house and my lender will show that the mortgage is "paid in full." do you know how this may affect my credit score since i will not be delinquint on any payments? will the short sale be on my credit report or negatively affect me in 3-5 years from getting great rates (i have a 750 credit score now)? will my credit remain intact? where can i find this information out?
thanks
Posted on: 16th Sep, 2009 08:56 am
Have attempted short sell for past 6 mos., but no buyers. Should I do DIL?
What steps are required?
Posted on: 16th Sep, 2009 05:01 pm
My husband passed away in 2006, I refinanced the house with a 7 yr. interest loan and I was working. In 2008 I I had to quit working and my income is less than my expenses. I tried to sell the house but the value had dropped considerably and I could not sell it enough to pay the realtor and closing cost. So nobody bought it. I am current on my loan but have decided I cant continue as it is using my savings.
I have the house listed in my trust and also want to know if I should take it out of there as I have my 401k and some investments in there and I dont want them touched. Should I file a deed in lieu?
Posted on: 30th Sep, 2009 03:00 pm
cant continue paying house and wonder if I should take it out of the trust and let it go or file a deed in lieu?
Posted on: 30th Sep, 2009 03:07 pm
I'm always lesry of not paying something - the impact of not paying can be pretty severe to your credit history.
Posted on: 30th Sep, 2009 05:03 pm
to margaret,

if you cannot continue to make payments any more, you can request your lender to do a deed in lieu of foreclosure. however, the lender may not want to approve a deed in lieu as you're current on the mortgage. in that case, you may have to deliberately get behind on mortgage payments in order to prove your financial hardship and qualify for the deed in lieu. as far as removing the house from trust is concerned, it doesn't seem to be necessary. you can simply talk with the loss mitigation dept. of your mortgage company and see if you qualify for the deed in lieu of foreclosure.
Posted on: 05th Oct, 2009 05:18 am
usually you have to list your home for 90 days, whomever is negotiating your short sale is the one to ask. Have you looked into a loan mod?
Posted on: 05th Oct, 2009 05:31 pm
I need help! bought some properties in CT for investment now we both lost our job, we can't handle the properties I want to walk out from these but we have our primary home in NY clear of mortgage... how am i protect my primary resident without lien or whatever will come? any suggestion?
Posted on: 06th Oct, 2009 05:14 pm
Hi,

The lender will never be able to foreclose on your primary residence just because you defaulted on your investment property. The primary residence was not used as collateral for the loan on investment property. Is that right? In case it is, they cannot come after your primary residence. But they may sue you for any deficiency from the foreclosure of the investment property.
Posted on: 07th Oct, 2009 05:47 am
It is impressive to see how many of us (including myself) used to give good advice on stop doing payments to get the lender to hear you out. Well, I was just like all of you but unfortunately had to stop doing payments and guess what? Got offered a free interest loan (after having a subprime rate of 7.25%)
All just because I was delinquent 90 days! Yes, my credit suffered somewhat but my wallet was very, very happy.....Just keep this in mind....
Posted on: 07th Nov, 2009 04:15 pm
In response to savior's answer..... this may be true in Florida, but possibly not in other states with different recourse laws (?)
I have investment land in South Carolina and a primary home in Virginia. I am told that if I need to walk away from the land (on which we are severely upside down with literally no hope of recovery in our lifetimes), that a lien can be placed on our primary residence and we could be forced to sell it. We have a lot of equity in our primary home and are worried that we'll have to declare chapter 13 to protect it. I hope I am wrong, but this is the picture I am getting from talking to a BK lawyer. The bank, at this point, refuses to negotiate with us as we are current on our mortgage on the investment land.
I am afraid to default without a plan to protect our primary home.
Posted on: 14th Nov, 2009 05:53 am
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