Okay so I am with Bank of America (banking, mortgage) I bought the home in Georgia 4 years ago, and I was relocated 2 years ago. The house has still not sold.
I live in Chicago now, but the house payments are killing me. I want to make sure to keep in the good graces of my other creditors. I called BoA and they informed me that if I try to short sell they will sue me for the remaining balance. They also told me that it would be rare that they would permit for a deed in lieu.
So right now I am considering allowing it to go into foreclosure and take the massive ding to my credit. (bye bye 830) I understand the effects and the time this will be on my credit, and I know it will be an uphill battle to get my credit score and report in good order. However; my fear is being sued for a deficiency judgment against me. I owe 112k on the house, and tmv on the home is only 109k at best simply because there are 6 foreclosures in my neighborhood. Would they really sue me and garnish my wages? Would it be wise for me to swap banks as soon as possible with what money I have currently?
Any help is advice is greatly appreciated.
I can’t believe i am saying this but i’d tell you to sign the deed to the bank today. In the old days i just told people to hang on. Houses always have gone up $50,000 if you just waited a couple years. Those days may be over. Sign the deed at a B of A branch and hand them the keys. Do not let the house sit empty. If it gets vandalized, it could cost you. Protect the house until you no longer own it. /
The best thing to do is to rent the house for enough to make the payments. Another thing you can do it is to sell it under a contract for sale or Land Contract in which you carry the note from the buyer and continue paying the mortgage you owe the bank.
There is something else called a wrap-around mortgage, I believe, but to sell it that way you have to get the bank you owe to agree to it. With the contract for sale, you don’t have to get the bank’s permission.
I sold a house that way and later paid off the bank, so now I collect the payments plus an escrow from which I pay taxes and insurance.
References :
I can’t believe i am saying this but i’d tell you to sign the deed to the bank today. In the old days i just told people to hang on. Houses always have gone up $50,000 if you just waited a couple years. Those days may be over. Sign the deed at a B of A branch and hand them the keys. Do not let the house sit empty. If it gets vandalized, it could cost you. Protect the house until you no longer own it. /
References :
WAIT! DON’T DO IT YET. You have some choices, rent it out for a couple of years until the market shows a real return, then try selling it. Or, price it to sell at $109 and take a hit on any equity or money you may have put into it. But don’t let it go just yet. If you’ve had it listed by the same company/Realtor, maybe a new one with fresh ideas can be a benefit. Start with the National Real Estate companies, they do a better job at networking nationwide. I can make a referral for you if you like.
Do a short sale scenario. When you get an offer, present it to the lender. They may just take it. If they do, they have to forgive the balance as long as you do it before Jan 2009. Ask any Attorney. If you let them take it back, the load is all on your shoulders for 7 years. You have options, try them and do it quickly.
If I can help further, just let me know.
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Realtor MN