Foreclosure stress--long--

[ruth]

Can you do a quick sale "dump" on the old house - sell it for only what you owe and not try to make a profit on it? That may be what you have already tried, I'm just not sure. But unless it has a higher than market value mortgage there are usually investors who will pick it up.

You can also finance it for the renters and have them make the full payment plus insurance, property taxes, etc. If they really want the house and can't get conventional financing they may jump at the opportunity - if not, list it in paper as for sale or lease and do a bond for deed.

Finally, since you've already bought your new home it shouldn't affect that mortgage unless you've fallen behind on it. If so, you might want to consider bankrupty reorganization - it's not a total write off of your debts it gives you time to get things in order and the court works out a payment plan for all creditors.

It is a bad seller market right now - I know - we too bought a home before selling our others and now I have two homes and a lot up for sale and we're not getting any calls about any of them. It's a pity I'm not in the market to buy more rental property right now because it is really a buyers market. However, the mortgage companies are being hit hard and are only loaning to cream of the crop - that's why offering a bond to deed to someone will probably be your best option. The way it works is you ask for a down payment, a monthly payment and the beauty of it is if they fall behind, even a month you can just have them kicked out and do a bond to deed to the next person. It's easier to take the house back than if you rent and they don't pay or you finance it for them and they don't pay.

Finally, most mortgage companies don't want to foreclose and will work something out with you - like letting you miss a few payments and tacking them onto the end of the mortgage, especially if they know you are trying to sell the house. My mom's mortgage company let them go one year without payments till the house sold.

I'm sorry for what you are going through. I've been through it myself. You and your husband really need to stick together through this.

Take care - I'll be praying for you.

 

[equine chick]

Then give them 30 days to decide or move or you will find another renter.

 

[ruth]

Oops - sorry I just saw that you posted more information while I was typing my lengthy response. It appears you've already tried a short sale.

Unless the renters have an unexpired lease they don't get an option about whether or not they will pay higher rent.

You can still try the other two options - working something out with mortgage company to buy more time - or doing a bond to deed sale to someone who could not otherwise get financing.

I can't tell you how many people call and ask if we will do a bond to deed or finance it for them when we list our rental properties. Many, many people want to buy a home of their own and they just can't get financing.

 

[eggchel]

Im sorry that you are having such a rough time of it. Hopefully your real estate attorney will be able to ensure that you dont lose the new place, too.

Chel

 

[lfoose]

The renters were very firm on what they are willing to pay. We went back and forth for 3 wks before agreeing on the rental terms back in Oct. They did not want to do the traditional lease option either. Where you pay rent plus X amount over that to go towards the purchase of the house.

The terms ended up being 6 mos rent paid up front w/one month going to the realtor for 'fees'. The realtors set up all of the paperwork for us. At the end of 6 mos, they were to get financed to buy. Legally, if they don't have the $ to buy, they are to be out of the house on March 31st.

I am unfamilar w/the bond to deed sale you mentioned ruth. I'll pose that idea to our realtor. Perhaps now that they have lived there for a while, they may be willing to do that.

 

[Jayare's Chicks]

Is it possible to sell 100 RAFFLE TICKETS for $1,000.00 each and when they are sold then do a drawing and that person gets the house after you pay it off? Or maybe 200 tickets at $500.00 a piece? Or even 400 tickets for $250.00? You would get $100,000.00 and that would be enough to pay it off and maybe even get a little extra in your pocket depending on how much it costs to have tickets printed up and have a company do the drawing.

I feel sorry for you. I hope you can get out of it at least breaking even.

Jayare

 

[FLchook]

Times are tough right now...and I fear they are going to get worse before they get better. We ourselves have 2 house, 1 is rented, and the other we live in. The plan was to build a new house here when we sold the other house, and I got a job after I graduated. Well, plans are so not going that way. Ive been out of college for a year now, still no job, and propects getting worse. No way we can sell the outher house, so we just wait. I still look at the bright side and consider us fortunate. We have a roof over our head and warm comfy beds at night.

I also can relate to your situation. Our neighbors are in the same boat as you, althought I think thiers was more greed then wanting to live a better life. But the final result is the same, they now have 2 mortgages, cant sell either house, nor rent for what they pay. I fear they will be facing the same situation.

I wish you the best in everything! God Bless.

Shannon

 

[lfoose]

This is alittle bit of a sidetrack of what the post was about but...

When we were looking we qualified from 3 banks for over $200k to buy a house. LOL, ok. I told one bank they were nuts. Unless we don't eat, sell the car and perhaps ourselves, we couldn't afford a house. So-we bought one that we can afford---if not for the old house. Anyway, it amazes me that it only costs us about $200 a month more to live out here than it did in the city. AND out here we have 2 acres instead of the 40x127 city lot, much better schools and little noise. Oh and we went from a house built in 1927 to a house built in 1820!

That city has made a huge decline in the 28 yrs I lived there. It's too bad too because it used to be a great neighborhood.

 

[Cassandra]

I feel so badly for you. I can imagine how you must be agonizing about it. And while I have never had that problem specifically, I know what it is like to agonize over lingering problems.

Have you ever listened to Dave Ramsey? I hear him on the radio and have read some of his books. I hear people call him with your exact problem all the time. I think he would recommend you offer the finance company a deed in lieu of foreclosure without recourse. What this means is you just give them the house back and they can't come back to you later for the balance owed. I'm not sure what the odds of them agreeing to that are, but it can't hurt to ask. He would also remind you to be SURE you stick in the without recourse part because that's your assurance of not getting sued later for the balance. And you'd want to get all that in writing that you were going to make that trade. He claims that with the foreclosure rate what it is these days, finance companies are being more willing to accept this option.

I hope good luck to you. Please keep us posted.

Cassandra

 

[d.k]

* I wasn't going to say anything about this, but your stories made me want to be brave enough to tell the tale. We didn't think we'd have any trouble selling despite the mrkt b/c even WITHOUT the house, the property alone was appraised for 289K. WE were only asking 156K!!! Yet, the "offers" we were getting never came up to A THIRD of that!! We couldn't figure it out!! Obviously, we don't know much about this business. My MOM 3,OOO miles away discovered the problem. . .The DAY we went into default the bank listed our house themselves!!!--- for for only $43,OOO!!!!!! $15,OOO LESS THAN WE OWE!! They HAVE NEVER ever tried to "work with us".