I dont even live there any longer. I live with my boyfriend and will most likely be there for a long while, possibly marrying in the future.I dont have renters and am paying for the entire mortgage every month. I make about $100,000 per year, will I even be able to do a voluntary foreclosure? Or what other options are there? I know it will negatively effect my credit, but at this point I dont care.My house has been for sale for close to two years.What are my options for walking away?
Just remember that any time you apply for a job in the future they're likely to pull your credit history and something like a foreclosure will cost you the job.My house has been for sale for close to two years.What are my options for walking away?
Call the lender, and reduce the price of the house. Or try and get renters in there, something, anything, is better than foreclusure. You could get month to month renters in there and be better off!
Reduce the price until it sells. If the property is on the market for two years, it either has no exposure or is over-priced. Set the listing price to lower 10% of houses similiar to yours and advertise it as a ';short sale.'; If you owe $180,000 on it, advertise it for $150,000.00. If the lender has to go after it in a foreclosure process, they will likely incur expenses of over $50,000.00 before they can get it off their balance sheets. In the early days of this mortgage meltdown, lenders wouldn't consider ';short sales'; as much for investment properties or with sellers that had other assets, but the deepening slump changes the rules almost on a daily basis. It would be better to have a ';settled for less than full balance'; on your credit report than a foreclosure.
First, speak with your lender about your options. Perhaps they would be wiling to take the house off your hands without having to go through a foreclosure. If not, put the selling price for a little as possible. Any house will sell for the right price, obviously, you are at that price yet.
Well as you know the market is tough, but don't go into foreclosure of a home unless your going broke as it take 6-8 years to build back your credit. The best bet is to look at homes similar to your own in your area (use Realtor.com as that has 90% of the homes listed anyways), and just cut 10-13% below the average price. Also do some small maintenance on the home like do some painting in the rooms to brighten them up, landscape, fix broken items (thats aren't a huge cost). That will help get traffic to your place and people looking. Also are you working with a realtor as they should have told you this as that is there job in your area.
Hope this helps.
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