Thinking about letting my house go *update post 39*

[zippitydooda]

Would your bank let you make interest payments only for a short period- such as 3 to 6 months until you are back to work? Banks don't really want the property... they would rather make money (even a small amount) rather than have to spend money. Or, could you refinance to extend the loan and lower the payments? Perhaps you could rent it to someone willing to do the labor for a reduced amount of rent and you pay for the materials....

There are loads of options, good luck with the baby & hope it all works out quickly for you.

 

[Sonoran Silkies]

Quote:
What are the recent home sales of comparable homes? Not listing prices---prices that the homes sold for. That will tell you how you need to price your house. Doesn;t matter if you owe more on it or feel that it should be worth more. THat will tell you what people are willing to spend. Now for a house that has the right appearance, ammenities and is in tip-top shape, they may pay more than for one that is in worse shape or has less going for it.

If you owe more than you can sell it for, you will need to investigate doing a short sale, which is something you must work out with the lender. Basically it is where they agree to accept an offer of less than you owe as payment in full.

 

[chicksbestfriend]

Quote:
Livinzoo, I would not advise you giving your house back to the lender unless you are willing to give up your credit scores. The way they have tightened up lending rules, you just might find out how hard it will be later on when you really need an emergency loan or need to finance the children for a higher education because of it. I would definitely get in touch with the lender right away, explain the situation with your upcoming short term disability and inability to make the payments and ask them for a Special forebearance. (I wouldnt disclose that you are living elsewhere, the conversation is about your inability to make the payments due to YOUR medical leave and YOUR reduction of income). Of course, you will have to show them the medical need and proof of decrease in income. Depending on your financial circumstances, your lender may consent to a repayment in which you will temporarily owe lower payments; or you may also get an interim suspension of payments. However, in order to secure this agreement, you will have to assure your lender that you will absolutely abide by the new repayment plan during the agreed time frame. ( A plus if you have a good record of making your payments on time). At the end of the forebearance, you resume your regular payments and bring the loan current through a lump sum payment or additional partial payments over a number of months, unless the loan has also been modified to make this necessary. If you have a FHA loan,as an FHA borrower may be eligible for a one-time payment from the FHA insurance fund to the lender to bring the mortgage current. (Which is usually for someone who is behind one payment). You are then responsible for repaying the “partial claim” when you pay off the mortgage or sell the property. Personally speaking from experience, I did the same process myself, fixed up the house and resold my property, not only making bank on it, but saving my credit scores. My credit scores actually went higher after I paid my house off early.

This option could at least buy you some time to do the fixing up that you need and want to do to sell the house, or buys you time to put it on the market yourself, "As is". Best of luck to both and congrats on the new bundle of joy that will be arriving shortly.

 

[hollymh]

What about doing a rent-to-own and basically selling as is? I would really advise against letting it go, that would destroy your credit.

 

[MeatKing]

First off, congrads on the new baby arriving

Second please don't let your house go, talk to the bank. The can only help you, if you ask. We were able to defer quite a few morgatge payments, durning the ressecion. A freind of mine, was able to only have to pay the interst.. (Their morgarge was for 400, 00... Compared to aour 120, 000.
They will work with you, and they do understand the times, and do not want anymore forclosures... This is part of how the resesion got so bad.
(I'm Canadian, I find our banks more strict) So I realize they may not do the same thing as for us. But there's no harm in talking to them. Everyone is a sucker for a pregnant crying woman, make an appointment, go in person. Tell them the truth, they are there to help!

 

[booker81]

I "gave up" my home in 2006, it was the house I bought when I was married to my first husband. He's not on the lien/note because his credit was so bad.

I'm still dealing with it, and not just the credit score problem (aka higher cost for my car insurance, though I have a perfect driving record).

I was sued by the HELOC (home equity line of credit) company, or rather, the people they sold my HELOC too. (I stupidly got one of the 80/20 mortgages - 80% standard mortgage, 20% HELOC).

I'm still dealing with it. They attempt to garnish my state tax refund (none, as I set my withholdings to owe, as I don't believe the gov't needs my money more than I do). They've previously attempted to clean out my bank accounts and garnish my wages. I don't really have the money to file bankruptcy or retain a lawyer, so I've just been floating by. I've had my current job for a year now, and they haven't attempted to garnish it, however, if I get the position I'm currently in the running for, I may track down who owns my HELOC and start arraignments, as I'm not out of the statute yet, and if they garnish me, they'll take a whole lot more than I'm wanting to pay. (The position I'm in the running for will pay me about 2-3 times what I'm currently making right now).

On another aside, when I rented a house YEARS ago, I worked out a deal with the landlords that I would replace all of the flooring, and would take the materials out of my rent. We would look for carpet/tile etc together, get the best deal, and they would subtract that from my rent. I did all the labor free. I enjoyed it, they got new flooring out of it, and everyone was happy. When I moved in, I had in one room the gorgeous mottled green and brown carpet, the other had brown and tan, ala 70's, with steam cleaned dog pee. The subfloor was stained and gross, but KILZ is the bomb. The hall had the cheap fake wood "tile" vinyl. Bedroom had neon pink. I redid it in a combo of tile in some rooms and the hall, and remnant offwhite berber in the other rooms. The cost was really nice