Legal action(s)? Overall credit affect? Interest Rate on my next loan?
2007-04-23 10:28:48 · 9 answers · asked by LeRoy M 1 in Business & Finance ➔ Renting & Real Estate
If you walk away the lender will have to foreclose. A Foreclosure remains on your credit record for 10 years, drops your credit score dramatically, and will negatively impact your ability to make purchases at prefered rates.
The other alternative, a Deed In Lieu Of Foreclosure, isn't much better. You'd be better off dropping the sales price to just enough to get out whole and taking the loss of profit.
2007-04-23 10:35:11 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Bad idea! Try to rent it to cover the payment. You could also refinance it to a lower payment, if possible. If you are already behind on payments, the bank may consider a "short sale" where you find a buyer that is willing paying less than what is owed in order to avoid foreclosure. This would be a last resort. If you are 30 days late on a mortgage, you are pretty much screwed for at least 12 months. Lates on your mortgage will make you a subprime borrower. Any loan that you even qualify for will most likely have rates above 9% and a lot higher fees. Your credit will take years to get back to average or good. Try to get a renter. Try to lower your slaes price to break even. Hopefully, you will find a buyer soon. Good luck!
If you have more questions, see my website.
hollyandtrevorparker.com
2007-04-29 14:48:56 · answer #2 · answered by maderlu 4 · 0⤊ 0⤋
Foreclosure, and a lasting cripple effect on your mortgage that will greatly reduce the ability for any future financing. Don't worry about the interest rate on your next loan, because you probably won't get one. Rent it if you can under the contingencey of a potential sale in the future, and keep it on the market. Depending on when you listed, the spring is coming, and this is the time when the market opens and starts buzzing with activity. The LAST thing you want is to have the property foreclosed on. Good Luck.
2007-04-27 06:25:13 · answer #3 · answered by novastarbanker 3 · 0⤊ 0⤋
The lender will foreclose on the property. This will trash your credit for at least 7 years. It will probably be several years before you can get any kind of mortgage loan again and you'll be paying extremely high rates when you can get one. The cost of all of your other credit will skyrocket as well.
On top of that, any debt that is "forgiven" due the foreclosure process is considered taxable income to you in many cases. The IRS will expect you to pay taxes on that at your marginal rate.
Contact a property manager and see about renting the property out. With a bit of luck you'll realize a small positive cash flow and a nice tax write-off to boot. In the worst case you'll at least be able to "feed the alligator" until the value of the home rises enough to get a sale and walk away clean. I've done this several times and made a small fortune when I sold out.
2007-04-23 11:14:13 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You're kidding, right? You cannot just walk away from this obligation. Believe me, the legalities are immense and you will regret the decision big time if you do it. There's a but more to it than the lender merely foreclosing. Like I said, the ramifications are huge. And really, your next loan? If you can not pay the one you currently have, you should not be worried about the next one which you may never get anyway. Wake up!
2007-04-23 10:53:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Foreclosure. Credit scores in the low 500's. Possible lawsuit for any losses (unlikely but it is possible). No buying a home for 2 years. Possible higher rates for another 2 years after that.
2007-04-23 11:04:16 · answer #6 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Dont walk away from your house find a REAL ESTATE INVESTOR they are always looking for homes to buy below market value and atleast this way you would sell your house with out the foreclosure problems that will stay on your credit rating for 10 years... To find one in your area look for signs on the street that say WE BUY HOUSES CHEAP. You can look also in that area's new papers also for them... Call them be open and tell them whats going on.... They will help. Real Estate Investor in Maryland . ShirleyBollinger@yahoo.com
2007-04-23 11:06:32 · answer #7 · answered by SHIRLEY B 1 · 0⤊ 0⤋
Irs will try to come to you for tax liability, also your credit will be affected for about 3 to 4 years (forclusure) and repossed.
you can try do do a short sale (which it the bank will accept less money than its owed. contact your realtor to see if you qualifed for a short sale. and or if the bank will allow it.
2007-04-23 10:41:04 · answer #8 · answered by JOSE R 1 · 0⤊ 0⤋
How come you don't lower the selling price of the property? Are you upside down on it. email me to taly2001@sbcglobal.net. I will be more than happy to help you out. Good Luck!
2007-04-23 10:39:52 · answer #9 · answered by Maribelle 1 · 0⤊ 0⤋