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If your forclose and you still owe money, You have to pay interest on that. How are you having trouble paying off a $35,000 house? I mean I have family who owe more than that on their cars. Is your income below $20k a year?
Read the original post again. It's $35K LESS than what they paid for it, not $35K.
Sorry for anything that I may have said that offended you. I read it wrong, my bad. But again, if you foreclose your house and you still owe $35,000 after you sell it you still have to pay interest on that $35,000.
But again, if you foreclose your house and you still owe $35,000 after you sell it you still have to pay interest on that $35,000.
We understand that...but paying the interest on that in 2009 (cause the paperwork won't go thru until 2008 now) is not going to hurt us nearly as much as continuing to pay 2 mortgages NOW. Liz
liz
there are a couple of things you want to look at. If the property goes through the foreclosure process once there is a judgment of foreclosure the property will go to sheriff sale. The back can possibly put a lien on your new property for the difference between what the property sold for and what was owed. They can also issue a 1099 for this difference which your husband will have to claim as interest.
Listing it below balance you would either have to get the bank to agree to the "short sale" or come to the closing table with the difference.
Another option to consider is doing a "deed in lieu of foreclosure" where you basically give the property back. Making sure part of the agreement is you will not beheld fo rthe difference .
The folks you need to be speaking to are the "loss mitigation" folks. I don't remember if you said the mortgage is current, if it is it maybe hard to get this dept to work with you , "I know a catch 22"
If your husband hasn't already have him call the lender, he can also give permission for them to speak to you. He can do this verbally but I would also have him fax over a letter
giving them the ok to talk with you
<snip> The back can possibly put a lien on your new property for the difference between what the property sold for and what was owed. They can also issue a 1099 for this difference which your husband will have to claim as interest.
Listing it below balance you would either have to get the bank to agree to the "short sale" or come to the closing table with the difference.
Another option to consider is doing a "deed in lieu of foreclosure" where you basically give the property back. Making sure part of the agreement is you will not beheld fo rthe difference .
The folks you need to be speaking to are the "loss mitigation" folks. I don't remember if you said the mortgage is current, if it is it maybe hard to get this dept to work with you , "I know a catch 22"
If your husband hasn't already have him call the lender, he can also give permission for them to speak to you. He can do this verbally but I would also have him fax over a letter
giving them the ok to talk with you
karla
Karla, our current property was is mortgaged at 100%, the equity at this point is so small (we appraised in May only $1,000 over the price we bought it at and only $1,000 over the loan value), that I am not really worried about them being able to touch this one. Plus the loan on this house in NC is in my name not his. Yes he is a co-borrower but I am the primary.
We've known all along that if we did sell it at the price we were asking, we would have to have the extra $35,000 to take to the closing table.
The deed in lieu of foreclosure is what we are looking at now. It seems to make the most sense for our situation.
We are still current as of right now. However to start the process we have to be 31 days late. Which means we have to miss a payment (something we hate doing but to make this happen, we have to do). We will pay the lawyer instead.
Oh, and I've had the power to talk to the mortgage company since day one...he made sure of that on ANY of our accounts..too many times things needed to happen when he was at work, like address changes, phone numbers, billing questions or the two times we got hit with identity thief.
But it seems that the tax burden is the biggest issue we have facing us and that won't hit us til 2009 at least. That gives us time to save for it and without the second mortgage and the lot rent, we can recover from this. Liz
liz
see if the lawyer can negotiate them accepting the deed in lieu without sending a 1099 it is worth a shot.
How is the deed on the new house? if hubby is 2nd on loan as co-buyer he is probably on the deed
The reason a deed in lieu looks to be your best bet is because even though there is no equity now they will be down the road. Judgments can last as long as 20 years so at any time they can come in and look at a lein.
I am sending you a dm
karla
How is the deed on the new house? if hubby is 2nd on loan as co-buyer he is probably on the deed
The reason a deed in lieu looks to be your best bet is because even though there is no equity now they will be down the road. Judgments can last as long as 20 years so at any time they can come in and look at a lein.
I am sending you a dm
I will keep that info in mind when we talk to the lawyer.
Got your dm and responded. Liz
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