Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It's going to happen, we are too deep in. We are upside down in the mortgage and cannot afford repairs to the house ( septic, hvac, rotting floors). Credit is already shot by cosigning for daughters student loans.
On the plus side is that my wife and I have stable jobs We have simply run out of time on this home.
Has anyone else been foreclosed on? Were you sued by the lender, could you find a rental. Any advice at this point would help.
Gosh, I am just so sorry to hear that. I have family who went through a short sale recently--can you possibly try that first? I believe the damage to your credit doesn't last as long. Call your lender and contact a real estate attorney who specializes in this. Of course, many lenders are not responding at all to borrowers, but it's worth a try. Definitely call your lender, explain the situation, and see what they will do for you. If they won't work with you at all, there ARE lawyers out there who will walk you through the short sale process and try to help you.
You can also call a local real estate agent that specializes in short sales. Short Sale Superstars is a website with agents that do short sales. I'm not hearing what has changed in your situation that would cause a hardship. You almost sound like a strategic default, which wouldn't be eligible for a short sale.
Whether or not you get sued by the lender depends on whether or not you are in a deficiency state and if you are in a non-recourse state, like many of the west coast states, not all loans are non-recourse. You need to check with a local bankruptcy attorney to find out whether or not your loan is subject to a judgement.
I can no longer afford the house, I do have bills. The home is 35 years old and thru the years we have raised 3 kids that finally caught up with us. The home is in need of major repairs that we cannot afford. The final straw was when the septic drain field failed, this is a major repair. The home is not worth it. Tax value is around 140,000, actual value around 90,000. Also there is no equity in the home. I am a living case of the epidemic that has swept the country.
Thank you for the website tip, I will look it up now.
I don't have any advice but I wish you the best of luck; it sounds like you are one of the responsible ones who got caught short by circumstances and a money pit. I hope it works out.
I can no longer afford the house, I do have bills. The home is 35 years old and thru the years we have raised 3 kids that finally caught up with us. The home is in need of major repairs that we cannot afford. The final straw was when the septic drain field failed, this is a major repair. The home is not worth it. Tax value is around 140,000, actual value around 90,000. Also there is no equity in the home. I am a living case of the epidemic that has swept the country.
Thank you for the website tip, I will look it up now.
I'm not trying to be judgmental or minimize your financial stress. I'm just trying to look at your situation from a practical standpoint about how short sales work. You just have to be able to show financial distress (negative cash flow) for the short sale.
Your property sounds like a good option for an investor.
If you have stable jobs, what are you spending your money on? What exactly is your hardship? What are the bills that you are actually paying?
You say that you are a living case of the epidemic that has swept the country, but you haven't lost your job.... Do you have any medical issues/bills? Do you have to relocate?
It sounds like your home is in disrepair, you are underwater, and want a way out.... there's nothing wrong with that... but own up to it.... don't blame it on an "epidemic." You don't want to throw good money after bad.. completely understandable.... but I'm not going to give you any sympathy unless you really have a hardship.
As far as things to do: Short Sale, Deed-in-lieu, Foreclosure, Bankruptcy.... these sound like they are all on the table.... and the good news is, you can recover from all of them!
As SilverFall mentioned, you will first want to find out if you can even be pursued for a deficiency.... If not, and this is your primary residence, then I wouldn't worry about it too much.... Yes you may have a foreclosure on your record, but you will be able to get an FHA loan in 3 years.
(Edit: Forgot to mention that even if you cannot be pursued for a deficiency, I would still attempt the short sale so that you don't have foreclosure on your credit report....but if you do, it's not the end of the world)
If you CAN be pursued, I would definitely try the short-sale/deed-in lieu route making sure your lender agrees to extinguish any deficiency.... If they do not or will not, find out if they will agree to a settlement that you can live with. If they won't do that either, then foreclosure is probably imminent....and a bankruptcy may be needed to wipe out the deficiency judgment.
Or you could just file bankruptcy right now and start "fresh" (if you qualify)
I would have a talk with a bankruptcy attorney to go over your options sooner than later... Almost all BK lawyers offer a free consultation.
Last edited by volk2k; 09-20-2010 at 10:12 PM..
Reason: Clarification
You sound like a victim of the "epidemic" of living beyond your means and using your house as an ATM machine. LOL. Many people fell into that trap.
We only took money out of the house to plow it back in via repairs or upgrades. We have taken a financial hit with the bad economy, and have other bills I wish we didn't, but our house is safe and very well maintained. Even though it was built in 1970 most everything you can see and touch (an a lot of what you can't) less than 15 years old and will never get to the point of falling apart as long as we live here.
The "epidemic" that swept the country was greed, lack of financial education and thinking that you can get something for nothing.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
