I just called my lender and asked about a return of deed in lieu of foreclosure, and they said I have to put house on market with a realtor for at least 60 days. I have had it for sale in papers and signs for 6months, and no luck. Houses dont sell good here at the lake. They mentioned a short sale, where I could take a lower than payoff amount and offer it to the lender. Should I stop makin 1500 a month payments now to show that I can not afford it, it would be just like giving them my money and gettin absoutely nothing out of it. Having goin bankrupt last yr, I do not care about credit at this time, just need out of this. Moving out of state and dont plan on buyin another home for yrs anyway. Anyone with any experience in this kind of thing have any advice???? Thanks.
2006-11-16 08:08:42 · 5 answers · asked by Dave Roderick 1 in Business & Finance ➔ Renting & Real Estate
A foreclosure (which will happen if you stop making payments) can be much more damaging to your credit than a BK...so it's better if you can avoid that route.
Selling it on your own is not always the best decision. Many homes need the exposure that the local MLS provides and there are creative, industrious agents out there that may be able to help you. For example - what about renting it out? Or finding a tenant on a lease to own situation?
Just because you don't plan on buying another home for years down the line is no reason to be so blase about your credit. Bad credit can affect your employment, and everyday purchases ranging from cell phone plans to utilities. You'll be paying more on these things because you have a bad credit history - and why fall deeper into that pit if you have alternatives? Find a couple of agents, interview them and pick one who can help you out of your predicament.
2006-11-16 09:44:15 · answer #1 · answered by whatever 3 · 0⤊ 0⤋
List it with a Realtor. Tell the Realtor that the lender implied a short sale may be in order. Priced right, it will sell. You might not even need a short sale.
Any way you look at it, a foreclosure is not a good thing to get on your credit. The lender requires you to try listing it first, because they know that listing it is the surest way to sell a home. It gets the most exposure, and results in a true market value sale.
Tell your agent to put in the MLS remarks "All offers subject to lender approval of short sale."
2006-11-16 18:15:33 · answer #2 · answered by teran_realtor 7 · 1⤊ 0⤋
Teran is correct. I deal with this on a daily basis. I'm also seeing that lenders are pushing the short sale and don't want the deed in lieu of foreclosure now a days.
Anyway, to answer your question, speak with a real estate agent first to see what price you can list your home for in order for it to sell in a month. If it's lower than what you owe, then stop making payments and let the agent handle the short sale as Teran stated.
If you're in Southern California, I can help.
Regards
2006-11-16 20:58:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The correct choice to do under these circumstances is to continue to make the payments. If you dont it would affect your credit report in many matters. If you would like more information on what procedures to take i can help you out just email me at Erick@onlinefsl.com.
2006-11-16 08:27:25 · answer #4 · answered by Andy L 1 · 0⤊ 0⤋
No !!!
Never stop making that payment if at all possible. The lates from a mortgage have far more of a lasting impact than whatever you might be going through now.
2006-11-16 08:13:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋