I have one of those "crazy mortgages" that everyone talks about and our payment is now 4100.00 a month. My credit is good and my income is good. I have a wife and 4 kids. We can no longer afford our mortgage and I have been actively trying to fix my situation. I have called the bank for a lower rate. They won't deal with me. So, being in the auto industry,I have secured a good job in Florida and I am closing on a different house in Florida in 2 weeks. I have my house for sale in nj but cant afford both payments. I am working with a realtor that will assist me with a short sale. My house is worth around 485000.
I owe 412000 on the first and 74000 on the second. different banks.I know this will adversely affect my credit if the house does not sell. Scenario A is I lose my house if my house does not sell and my credit is ruined. Scenario B is I buy the house in florida and possibly lose my house in nj but i will still be a howeowner living in florida.
2007-12-02 02:01:31 · 5 answers · asked by josh n 1 in Business & Finance ➔ Renting & Real Estate
Buy the home in Florida, then let your home in NJ go into foreclosure. You already have your new home so your credit will not effect that. You just have to live with crappy credit for the next 3 or so yrs. Buy everything you need credit for first, then let the home foreclose.
You could also rent out the home for the time being, it will help the economy. Every time someone like you walks away it drops the values for all the other home owners lower.
2007-12-02 02:38:24 · answer #1 · answered by frankie b 5 · 0⤊ 0⤋
I just have to ask: did you not see this coming? Why did you enter into a mortgage that clearly spelled out a higher rate in the future if you wouldn't be able to afford it when it reset? You signed the "crazy mortgage" and voluntarily entered into this situation. If you were able to purchase a $485000 home, you must have made some good financial decisions in the past.
To answer your question: the consequences are that a foreclosure will wreck your credit. It will also lower the property values of your neighbors' homes. If the value of the home drops too far, it is possible that you will still owe the bank after the foreclosure and they will sue you for the difference. The bank you are using for the Florida sale will perform their due diligence and will discover the NJ problems and could pull out of the deal or sharply increase the interest rate since you have fallen behind on a mortgage in the past. It will make it harder for young, financially responsible people to get their first mortgages. It will have a ripple effect through the economy that will result in a slowdown and job losses.
2007-12-02 03:05:54 · answer #2 · answered by TaxGurl 6 · 1⤊ 1⤋
What the first guy said letting to go into foreclosure is a stupid idea. Agreeing for a short sales is your safest bet, you a agreeing to it AND the bank and both of you move on with your lives. Now just sitting back and letting it go into foreclosure will cost the bank lots of extra cash, attorney fees ect. THEN, if you say you have a good income that means you could be subject for a good law suit for the difference as your home went into foreclose.
2007-12-02 17:09:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I certainly hope that you are current on the first mortgage in New Jersey. If you're not, that closing you expect in two weeks just might not happen. Lenders do last minute credit checks just prior to closing to insure that you are still the 'good risk' they thought you were when they approved you.
If any delinquencies on that first mortgage show up in your credit file prior to closing, there might not BE a closing.
Frankly, I am surprised that you got any sort of an approval all, with a half million dollar debt owing out there.
2007-12-02 03:34:42 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
My husband and that i've got the two been homeless or with a house yet too undesirable to purchase a lot nutrition (in spite of foodstamps) and we went to the nutrition banks for 'donated nutrition' ... maximum OF IT replaced into not sturdy nutrition ... human beings provide 'old' cans they ought to throw away, broken (smashed) pasta, mixed dried beans that want diverse quantities of soaking and cooking time ... even vegetables they don't elect to consume because of the fact they are wilted and dried out. as quickly as I provide to a foodbank (which we do regularly) i bypass to the keep and purchase NEW fundamentals ... packing packing containers of pasta (the final they have, too), NEW cans of nutrition, sparkling flour, sparkling vegetables, canned meat and canned juices, infant nutrition in all types ... then I take it and drop it off with a 'i'm hoping this facilitates' and a huge smile ... if I carry around, I tell the those that we as quickly as have been the place they are, and we've money now, so we are only 'paying back' what we've been given ... and human beings delay their heads and think of that they are only 'down for awhile' as a substitute of being 'down continuously' ... it is not selfish to feed a guy or woman who desires nutrition ... an previous guy or woman, a worker, a mom, a father, a new child ... human beings should bypass to mattress FEELING finished AND understanding they are going to GET finished the next day, WEEK, MONTH, year. Donate sturdy nutrition (regardless of if it ability you ought to consume slightly much less for an afternoon or 2 a month) and the worldwide would be a extra advantageous place for actual anybody!
2016-12-10 09:57:05 · answer #5 · answered by ? 4 · 0⤊ 0⤋