due to the crash in the realty and home selling market, if i wait on selling my house until i give it to the bank will that mess my credit up? because of how bad the housing market is...does it affect my credit? but all im worry really is about is giving it back and will i still have to pay off what i owe on it?
2007-03-25 16:03:36 · 5 answers · asked by AMANTILLADO 2 in Business & Finance ➔ Renting & Real Estate
Are you talking about foreclosure and what would happen if you wait for the bank to sell it as opposed to you trying to sell it before the whole process of foreclosure starts? If this is what you are asking, I think that if it's possible you should indeed try to sell the house if it's at all possible. Once the forclosure process starts, it can be quick. Is there any chance that you can work something out with the bank? You don't just give it to the bank. They will take it, try to sell it and possibly leave you having to pay them what money they are out which usually includes a lot of legal fees. It has nothing to do with the "housing market". Additionally, it will definitely hurt your credit as you will have a foreclosure showing on your report. If at all possible try to find someone to purchase the property even if you won't make any money on the deal, it's better than ruining your credit and having to be responsible for paying the bank money. Maybe there is someone that you know with good credit who would be willing to take over your payments through the bank in exchange for the house.
I'm not clear on if you are speaking about a house that you live in or an income property? Is it possible to turn around and rent the house out for enough to cover your payments, taxes, etc.? At least until you could sell it? If you feel that you are too far behind and you don't think that the bank would work with you, you could be wrong. Sometimes, especially if the bank feels that they can't get their money out of the sale of the house, they might work with you in order to catch up on payments. Talking to them might be your best option if you would like to protect your credit rating.
Good luck to you.
2007-03-25 16:26:46 · answer #1 · answered by Mary R 5 · 0⤊ 1⤋
Yes, it will affect your credit. Whether you let your property go into foreclosure (worse case scenario) or you give the property back to the lender (deed in lieu of foreclosure), both will affect your credit.
Insofar as giving your property back and still have to owe the lender is concerned, the lender will have to seek a "deficiency judgement" and the likelihood that they'll do that AND accept a "deed in lieu of foreclosure" are VERY slim. That issue will be part of the negotiation.
Like a previous contributor suggested, contacted your lender and ask for a "short sale." This cannot be initiated until you have a qualified buyer. Start off by contacting an agent who is experienced in short sales.
2007-03-25 23:25:13 · answer #2 · answered by ucla987 2 · 0⤊ 0⤋
OK, the first question is...can you afford the house payments? If yes, why would you want to sell. Real estate prices ALWAYS come back over time. If you can't afford it anymore, then you need to sell. Do no wait for foreclosure, that will go on your credit and ruin you for years.
2007-03-25 23:08:37 · answer #3 · answered by HoustonTexan 3 · 1⤊ 1⤋
ask the lending institution if they will approve a short sale.That is where a foreclosure will not go on your credit.If they do this ask them if you will still be responsible for any deficiency.Or you could just give the lender a deed in lieu of forclosure.Ultimately it is the same.
2007-03-25 23:10:38 · answer #4 · answered by tenacious 1 2 · 1⤊ 0⤋
Another happy home buyer.
http://www.breakingbubble.com/
2007-03-25 23:12:01 · answer #5 · answered by Anonymous · 0⤊ 2⤋