Quote:
Originally Posted by Irishgem11
..... I am STUCK..
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My $00.02
Lets break down your situation...
I understand your goal, wanting to unload your investment property in AZ. Don't worry - there is nothing connecting your primary home in CA. Deficiency Judgments are not allowed in Arizona, loans are secured with the property.
I respect you - having a good credit score is a sign of a responsible person.
I want you to get the word "Foreclosure" out of your mind.
That is the worst thing you can do for your financial future!!!
The person is correct about getting approved for a short sale - the lender will denied you because you can afford it and there is no sign of a hardship. Even if you were approved, there's no guaranty it well to sell.
The next alternative is a
Deed in Lieu - two things happen simultaneously, (1) a loan modification is attempted to lower the payment, (2) the property is listed for 90 days in attempt to sell. If it can be proved you can no longer afford the mortgage payments, and the property doesn't sell. You can immediately walk free and clear.
The key is showing the bank your income has been reduced. Showing the Lender you now on social security and no longer making the same amount of income. Do you have other sources of income? Are there other people in the loan? This needs to be discussed with someone other than your Lender if needs to be mentioned.
Regarding your credit - I regularly give talks on how to repair damaged credit, about the five items the are used to judge your score. People in their 20's to 30's - can gamble more with their fiancees, because they have time on their side. People in their 50's to 60's - having less time, have to be more careful what they do. What you do today is going to make you who you are tomorrow. Once you get there, you cannot turn back time.
Nobody can tell you to go late! , because it will affect your credit score. Although with what you are facing - letting the house go due to foreclosure is the worst thing you can do. That will be on your credit report for min 10 years before it comes off.
Since you have been up-to-date with the mortgage payments, in the banks computer you are not showing a hardship. By going late a few months, this will draw their attention. The down side to this, mortgage late's will take your score down. This is much better than allowing a foreclosure to be listed.
Noting Arizona is a non judicial state - a lender can initiate foreclosure proceedings after four months of non payment. Doing a deed in lieu and making it work. boils down to the timing. The deed in lieu is on a voluntarily basis to the Lender. By showing the situation default is imminent, and comparing the cost to the Lender for the foreclosure, it will cost them less for the Dee in Lieu. If you wait to long and foreclosure proceedings are started, it will be to late to change.
I do not want you to have any animosity to your Lender, because banks get their money back regardless. Mortgages are held though investments sold on Wall Street as Mortgage Backed Investments. Either though a short sale, Deed in Lieu or foreclosure, banks are giving back the note in exchange for the balance owed.
Lastly - you need to choose who is going to be representing you. Last week I spoke with a lady in Texas who was fed-up with the Bankruptcy attorney working for her. She told me what they did and what wasn't happening, it was clear he was steering her towards a chapter 13 (that's what they get paid to do). By getting the wrong type of representation, there is less chance of success accomplishing your goal.
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