In 2004 I got divorced. We had the house for sale for some time. My ex needed money to put down on a house so I had the home refinanced. The home was appraised for 389,000 and I took out a 360,000 first and second mortgage. I was told at the time I would have no problem selling the home. Well its been on the market for 4 years and the new market value is 317,000. I am having trouble making the payments. I have tried to talk to my agent about a short sale with no help. There is a part of me that wants to do the right thing, but I am at coming to a point where I can not afford the home. I have contacted GMAC also with no help. Do I walk away?
The first thing you should do is call a housing counselor. You can find good ones that do not charge you at www.hud.gov . The next thing that you should do is call your lenders Loss Mitigation department and find out what you will need to do a short-sale. Then find a Realtor who specializes in short sales. If this is your primary home, there might not be a tax implication for you through new laws.
Foreclosure can haunt you for years and you might not be able to even rent because of the damage to your credit. As overwhelming as it can be, just letting a house go is never a good idea. You might be surprised at the amount of options that you have.
The first thing you should do is call a housing counselor. You can find good ones that do not charge you at http://www.hud.gov . The next thing that you should do is call your lenders Loss Mitigation department and find out what you will need to do a short-sale. Then find a Realtor who specializes in short sales. If this is your primary home, there might not be a tax implication for you through new laws.
Foreclosure can haunt you for years and you might not be able to even rent because of the damage to your credit. As overwhelming as it can be, just letting a house go is never a good idea. You might be surprised at the amount of options that you have.
References :
HUD Approved Housing Counselor