Foreclosure?

Question

I have an 80/20 adjustable. Bought in 2006 June. I have come to a place in financial that I wanted/needed to sell the home. However, no one wants it. I did not want any money out of it. I just wanted out. However, even the "we buy houses" say no. Refinance say no. I am current on my mortgage and in good standing with the mortgage company. They just state that the credit dosen't qualify for them to help. All I want is to have someone take the home over I want nothing from the sale. I have no money for closing either How does it work to return the home to the bank and owner of the 80/20?

Answer 1

You can't just return the home to the bank. If you quit paying, they'll repossess it and sell it, but if they sell it for less than you owe, you'd still be on the hook for the balance.

Answer 2

Based on what you have told us you are upside down in the property. You bought just before the market adjusted. Rotten luck, sorry.

You could try a lease option or rent to own, just be aware that you could be in worse shape than you are now if the person stops making payments to you. Then you have to evict them and still make the payments.

Consider this, contact a couple of large title company in the area of the property, ask to speak to a senior escrow officer, and ask them to refer you to 2 or 3 agents/brokers that can handle a short sale. Call the agents and have them come out and take a look at the house. You have to be as open and honest with them as you have been here. Then pick one that seems most knowledgeable about a short sale and that you would like to work with. A short sale is where you stay in the house while it’s on the market and the banks agree to reduce the amount that they will accept on a sale so that you can sell it below what’s owed. My experience is that the banks won’t do this for an owner, but might for a well prepared agent/broker.

After you select one the agent will have to contact your lenders and see what they can work out. If the property is over encumbered the lenders will probably be willing to work with your agent. You are in a bad place, but you aren’t powerless. The lender knows that this can still go bad for them too. Owners that contact attorneys that are just going to stall the foreclosure for as long as possible will let the foreclosure run until the last minute and file bankruptcy. This puts everything on hold for what can be a very long time, banks know this. Your agent should know how to leverage this to your advantage.

As I write this I just had another thought. You might contact your lender and ask to speak to their REO (for banks it might be oreo – stands for other real estate owned) and ask them for a agent that they use to market their foreclosures. I’d think that if you contacted one of their marketing agents and had them look at the situation that their agent might have more credibility for your case. At the very least that agent could give them a good idea what the bank be able to sell the house for.

Again I’m sorry for you and your predicament, but glad to see that you are trying to do the honorable thing.

Good luck

Answer 3

Good Luck with that ! Put a sign in the front yard with the price and closing cost. AS IS. You can also so put the keys on the front porch and walk away. U really don't want to walk .It will tank you credit. Look at renting it out. Or getting a room mate or two. Best of Luck,.

Answer 4

Let them Foreclose. No one wants the property b/c its a dead asset to them. Your loan plus interest is an asset for them.

Maybe try a rent to own with the option to buy in 2 years. use the rent money as the mortgage payments. meanwhile, fix up the home and sell it and make a profit and walk away. :)