I moved to a new town from chicago 7 months back. we bought a new home here. We kept our condo in Chicago for sale since april. we changed two realotors, went 20K below the average price, did everything we can. but it just doesnt sells. Now all my savings are exhausted and i cant pay two mortgages (new home and old home). I was thinking of foreclosing the old home as i cant pay the mortgage anymore and iam not even living there.
In my salary, i can pay my new home mortage, all my credit card bills,etc. My question is that if i foreclose the chicago condo. Will i lose my new home, job or my other credit cards , etc also?
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On doing google search i found out tat one can foreclose by simply not paying the mortage and the rest is taken care by the company. but i really dont wanna do that. Do you think its possible tat i just call my lender and say them abt my inability to pay the loan. Is this a good option? or are lenders very mean and unhelpfull in this.
2007-11-29 02:41:13 · 8 answers · asked by Smart H 1 in Business & Finance ➔ Renting & Real Estate
I recommend that you hire an attorney who specializes in real estate law before you talk to the lender.
Follow the advice of your attorney.
Some of the other responders have given you advice that I suspect may not be in your best interest.
Your attorney will be able to give you a much better answer and it will not cost all that much compared with what you have to lose if you do not talk to an attorney.
.
2007-11-29 02:52:35 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The short answer is no, you will not lose your primary residence because of a foreclosure on an investment. The lender may put a deficiency judgement against you that could attach to your residence though. It shouldn't affect your job either unless they require you to maintain excellent credit for some reason.
Foreclosure greatly harms your credit and there may be another way out of your problem. Have you spoken to your realtor about doing a short sale on the home? A short sale is when your lender agrees to take less than the current mortgage and usually forgives the rest. It will not harm your credit near as much as a foreclosure.
Whatever you do make sure that you are in constant contact with your mortgage lender - never stick your head in the sand - good luck and if i can help further please email me.
2007-11-29 03:04:25 · answer #2 · answered by Rob Kosberg 2 · 0⤊ 0⤋
You should call the lender and explain the situation. They may accept a short sale, or you can give them the property back and avoid foreclosure entirely. This is done by giving a deed in lieu of foreclosure, and you research more about it.
You won't lose your other assets or have your wages garnished by having the house foreclosed. Although the bank may be able to sue you after the foreclosure for a deficiency judgment, lenders almost never do this. They know that foreclosure victims do not have the extra money to pay tens of thousands of dollars in judgments, so it's not worth the time and money to pursue.
So ask the bank what options you have, and don't worry about them coming after you to garnish your wages, repossess your car, or take away your prize race horse or other assets. Just focus on avoiding foreclosure.
2007-11-30 06:55:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you call the lender, you have nothing to lose.
However, one thing you said is of concern. Are you saying you priced your home $20K below other LISTINGS or recent comparable SALES? There’s a big difference between the two. Listing prices aren’t good gauges of selling prices. To state the obvious, only comparable property’s recent selling prices can help you appropriately price your home.
2007-11-29 02:46:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Can you rent the other home until the situation improves??
Instead of selling it that is. Or what about a lease to own option on that home?
I'm sorry you're going through this.
I'm hoping you won't foreclose.
2007-11-29 02:44:49 · answer #5 · answered by Anonymous · 1⤊ 0⤋
call your lender. asap
then check Illinios law and your Chicago mortgage contract about deficiency judgments.
your current lender won't want to lose your business, nor most employers your services, so relax a bit there.
GL
2007-11-29 02:45:24 · answer #6 · answered by Spock (rhp) 7 · 0⤊ 0⤋
you will not lose your job or your current home if you go into foreclosure on the other home. What you need to do is a short sale with your other home instead of just stop paying altogether. This will make not as painful for you.
2007-11-29 02:44:35 · answer #7 · answered by healthspot_2000 4 · 0⤊ 0⤋
They'll win for the simple fact that they are not Hillary or Obama. They scare the hell out of a lot of people in this country, and rightfully so. Yeah the status qua isn't good, but that doesn't mean we should take ideas from the loony bin either.
2016-04-06 03:33:55 · answer #8 · answered by Anonymous · 0⤊ 0⤋