My sister purchased a home in April 2007, she has relized that the mortgage plus bills and 3 boys is just too much. The house is under her name and our fathers should she just stop paying for the mortgage and wait to be forclosed or call the bank and see if they can work with her? Any feed back will be wonderful.
2007-11-01 01:42:05 · 7 answers · asked by ymata 2 in Business & Finance ➔ Personal Finance
Call the lender and see if they will take a short sale. Most of the time, the lenders don't want the house to go into foreclosure because it will cost them a lot of money. Short sale is the best solution for both parties.
It will allow the lender to take a smaller loss on the house, and the owner can sell the house at a discount. If your sister doesn't care about making a profit on the house, and just wants to get rid of it, sell it at a discount since the housing market is really tight!
All the proceeds will go to the lender and they will release the lien (loan) off the property and she will owe nothing (as long as the lender agrees to a short sale). Once the transaction is closed, your sister's credit will be damaged, but it's better then having a foreclosure on her credit report.
Good luck!
2007-11-02 18:15:46 · answer #1 · answered by Gary 4 · 0⤊ 0⤋
Foolish to allow it to be foreclosed on and ruin her and his credit.
If she can't afford the house, she needs to put it up for sale. DEFINITELY suggest she contact the bank and let them know she's having problems. They might be able to arrange a short sale to get her out from under the note w/o doing as much damage to her credit as a foreclosure would.
However if she damages her credit she may have a difficult time finding another place to live. It's unlikely another bank would want to loan her money to buy another home, and even many apartments/rentals run a credit report on people before allowing them to sign a lease.
Foreclosure should be a last option.
2007-11-01 08:52:15 · answer #2 · answered by . 7 · 0⤊ 0⤋
Yramos,
the best thing for her would be to sell.
the truth is she probably will not find a buyer . Selling is the best choice.
she needs to understand foreclosure will ruin/destroy her credit and your father's credit so don't go there.
foreclosure will costs her and Dad all fees legal courts and any outstanding loan amounts.
may i suggest a reading of '48 days to work u love' d.miller . a good book for going forward and plenty of fresh reference material.
the other one is 'total money make over' d.ramsey helps our folks retain their cash.
spending less and getting more value from their paychecks.
our associates have a mandatory read of the books.
your sister needs to increase her income and reduce her spending. the kids need second jobs. any car loans need to be sold and cash car bought.
foreclosure is NOT the way to go.
2007-11-01 09:07:10 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Why don't you try to sell the house? Even if she loses some money at least she will not go into bankruptcy.
Or call the bank or credit union to consolidate her loans.
2007-11-01 09:47:04 · answer #4 · answered by gonzo 3 · 0⤊ 0⤋
Rent a room for extra income.
2007-11-01 18:01:31 · answer #5 · answered by Goodhead 3 · 0⤊ 0⤋
she needs to call them first. if she does then they may be able to work with her on a resolution. why not sell it asap?
2007-11-01 08:50:38 · answer #6 · answered by flick_79 2 · 1⤊ 0⤋
is there not a way she can sell it
2007-11-01 08:50:30 · answer #7 · answered by Clueless 5 · 0⤊ 0⤋