walk away from mortgage??

Question

Filed bankruptcy 2 yrs ago-- mortgage has went up over $150, beginning jan 2007- its hard to stay working in michigan right now. My credit is horrible because of work. What is the implications if I walk away from this mortgage and become a renter?? I have already trashed my credit with the bankruptcy, I do not want to trash it more of course. What the heck does a person do, can t refi (lower payment-havent refied since 2002)because of bad credit. I know my house is worth at least $20000 more than what I owe on it. But no lenders will touch this situation.So what freaking options does one have??

I will be contacting a realtor Monday-- A few homes have sold around here not many at all. It would be nice to walk away with something in my pocket. What are the fees usually with realtors?? Do I owe them $ if it doesnt sell??

Answer 1

Don't walk away from your mortgage, that's walking away from the only real viable asset you have. Contact a government agency or a credit agency that may be able to help. Also, maybe it's time to sell and take the equity you have in the house and walk away at that point. Have you considered taking in a renter to help cover the cost of the mortgage?

Answer 2

If you can sell the house for the balance on the mortgage plus realtor fees, then that would be one option. That would not have any negative effects on your credit. Keep in mind that landlords check credit, so you might have a problem finding a rental if vacancy rates in your area are pretty low.

You also could get a roommate to help pay the mortgage. If it's doable for you this would be a better situation since you'd get to keep your house. But, if you have an adjustable mortage then your payment will just keep going up every month. (Does yours have any kind of cap?)

Answer 3

1) No sane landlord would look at your credit history and rent
to you, so you could be out on the street. At least now you
have a roof over your head- cherish that.

2) You could sell your property and buy one in CASH?
Move somewhere where you can actually buy something for
20k. It may not be the life but having a mortgage-free roof over
your head will do wonders for your life. 20k is certainly not
a lot of money, but look on ebay- there are places you can
buy in the USA for that amount. Go there then try to enroll in
the unemployment office career changing courses. Whatever
you do avoid getting a mortgage at all costs- your bad credit
will always leave you broke because of high interest rates
Buying a property mortgage free and retraining as a plumber
or something people always need will help you live your life
better. If you are on drugs then sorry there is no hope....

3) Contact your mortgage company and speak to them
anonymously about payment holidays for the type of situation
you are in. Ask if they have any type of program they can work
out. I cannot see how refinancing your debt will help you right
now unless you had a variable rate. You could go with a fixed
rate 40 yr mortgage instead of 30, but you have to ask yourself if that will really get you out of this problem if you have
no income after a while. Also interest rates are much higher
than 2 yrs ago so you can be doing yourself harm.

Some other options might be to sell the house to someone for
the (reasonable) market value minus the value of your debt and then - some extra percentage in exchange for letting you live there rent free (or at a very reasonable fixed rent) for x number of years. There are actually people out there who do this but you have to be careful. Some are out to make a bigger than their fair share of profit and others will be nice and tell you one thing, then foreclose on you the day you dont pay them the fixed amount you state and dont believe it wont happen.

Another option would be to RENT out your house for an amount equalling your mortgage (no profit to you) and you live somewhere else that you can afford. Of course you would need people with a terrific credit history so you could trust that their payments would cover your mortgage (see how it works both ways?). Well I dont know about michigan but if you rent out the house for 5-10 years you might find the market recovering and that you are in a very cash + situation all the while being able to meet your financial obligations.

Def consider the refi to a fixed rate mortgage but do not pay above 8%

Go to ZOPA.com and see what rate they will loan money to you for. It could be better than the banks.

Finally, and this is a weird suggestion, ask about sharia compliant bank loans- the muslims might have something for you
without interest. But hey, I am not a muslim promoting this option and I am sure they could and would still repossess your house if you didnt pay them the fees you owed.

Good luck.

Answer 4

Sell the house and then rent. If you walk away not only will it extend the time on your credit report of bad reporting, but it will cost you the equity if it sells low in a forced sell. Let your lender know the house is up for sell, give them a copy of the realtor's agreement and walk away ahead.

Answer 5

If you have a house worth $20000 more than you owe on it, then just sell it. Pay off all your debts with the profit and start over again. Could you live with family while you get all your debts out of the way?

Answer 6

Call a realtor ASAP. Tell them to put it up for the "flying off the shelf price" Try to make another payment or two. Call the lender and tell them the situation.

Best of luck,

Answer 7

sure and that's why maximum loan companies won't finance persons that are no longer married. have you ever heard approximately those companies which will are available and purchase your place rapid. Now I even have been advised that they regularly do no longer provide you what you're inquiring for the valuables, yet a minimum of you may desire to get out of the loan. have you ever considered renting out a room in the homestead so as which you will have extra funds to pay the loan till the homestead sells? you may run an advert on Craigslist, get a secure practices deposit, print a lease on line, and lease a room, and allow the renter to share areas like the kitchen, and so on. on account that he has no longer paid on the loan for a while, he should not be entitled to his finished share of the proceeds of the homestead, you may prefer to employ an lawyer. And the final ingredient which you ought to to purpose is refinancing the homestead in in basic terms your call and not giving him something, which would be your bullying tactic, yet in the previous you utilize this risk, verify it out and make specific it relatively is even conceivable. This guy feels like a entire lady abuser, walks out on a loan, cheats, makes use of the homestead to regulate, what a loser. you're extra appropriate off without him. Make a catalogue of your innovations and get busy. stable success.