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General => General Discussion => Topic started by: lordxizor on April 26, 2011, 02:03:58 PM
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PLEASE READ: This is not a thread in which to make conclusions about the morality of what I am choosing to do. It is only for discussing what happens during a foreclosure and the financial implication of that.
Long story short: We are extremely underwater on a home that we no longer live in and are renting out halfway across the country. It will be a minimum of 8-10 years before we could sell and break even given current forecasts. We are losing $525 a month between the rent we take in and the payments. It simply doesn't make financial sense for us to continue on this path and are seriously considering walking away.
Has anyone here been through a foreclosure? I have no idea what to expect other than a large hit to our credit (which doesn't really bother me all that much). Where there unexpected things that were affected?
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Kind of an oipen ended question without know other aspects of the situation. You can message me If you want, rather than keep it out in public. Your choice. :) I have been in the mortgage/banking industry for over 18 years. so I may have some insight into your situation.
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I'll let you know when my family and I eventually get kicked out of our house. We've been on the verge of foreclosure at least 3 times now.
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Is a short sale out of the question?
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Is a short sale out of the question?
Yep. We make too much money.
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My dad would know more about this than me, he's expecting to lose the house any day now, going on a few years actually. :lol They've been extremely slow about it.
To be honest, I'm not sure about what would come up next, but I'll ask him and report back. Sorry to hear about that hun.
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Get a lawyer....I went through this years ago before the whole collapse of the economy
If you just walk away, you are still responsible for the mortgage or the difference in the mortgage and where the bank sells the house during the sheriff's sale.
I was lucky enough to have my foreclosure put off for a few months and was able to sell the house for slightly more than what was due on the mortgage, this may not be the same in your case, but either way, you could sell the house for alot more that what would happen via a sheriffs sale/auction
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I've never been through foreclosure, but I read recently that the credit hit on a foreclosure isn't as bad as a bankruptcy. So it could be worse.
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Get a lawyer....I went through this years ago before the whole collapse of the economy
If you just walk away, you are still responsible for the mortgage or the difference in the mortgage and where the bank sells the house during the sheriff's sale.
I was lucky enough to have my foreclosure put off for a few months and was able to sell the house for slightly more than what was due on the mortgage, this may not be the same in your case, but either way, you could sell the house for alot more that what would happen via a sheriffs sale/auction
Yeah, I know technicaly the bank can come after me for the difference if they choose to. Not sure how often that actualy happens though. A short sale is not an option. My bank wouldn't even work with me to refinance. I make too much money. I can "afford" my mortgage. If losing $525 a month and slowly draining my savings while being unable to save any money is considered affording.
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not sure of your details and whether this is an option, but I have always benefited from doing lease-to-owns with my properties. in your case, assuming the renters are interested, they would put down a reasonable down payment. you could potentially increase their rent a little, and then give them a portion back. it is a win for them because their money is going towards something and they have the hope of being homeowners, furthermore they take better care of the property and you can even put in the contract that they are responsible for repairs. it is a win for you because you get a down payment that will help you get over this hump, and if they default or decide not to buy it, you can start all over.