Question-
In-laws have a 40K mortgage on a house that is falling apart... roof caving in, mold on the walls and is basically irrepairable through insurance claims. Are there any loopholes with mortgages if we have the house deemed inhabitable?
Please advise ASAP!!!!
2007-02-17 11:20:29 · 5 answers · asked by Jenn 2 in Business & Finance ➔ Renting & Real Estate
A Rehab or 203K (FHA) loan.
2007-02-17 14:04:35 · answer #1 · answered by ron d 3 · 0⤊ 0⤋
I have been a mortgage broker for 20 years. There is no way out of the mortgage short of giving the property back to the bank What you might want to do is find out if the land is worth 40k and just sell the property with "value in land"
2007-02-17 13:58:06 · answer #2 · answered by loandude 4 · 0⤊ 0⤋
No loopholes, they took out the loan, they owe the money. It isn't the bank's fault or responsibility that the home is in disrepair.
They need to try and sell for the value of the land minus the cost of removing the inhabitable home, and re-pay their debt.
If they walk away from the property - they get foreclosed.
2007-02-21 08:59:55 · answer #3 · answered by walkinandrockin 3 · 0⤊ 0⤋
If the house falls down and insurance doesn't cover it, they still have to pay the mortgage.
Their only real solution seems to be to sell it to someone who can rehab or rebuild, or do it themselves. They'd have to finance the build on top of the $40K they already owe, so hopefully the land has enough value to still give them the equity they'd need to get the job done.
2007-02-17 17:28:15 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Sorry I don,t know I live in Canada
2007-02-17 14:06:19 · answer #5 · answered by pattibcacl 6 · 0⤊ 0⤋