Real Estate and Home Mortgages - Foreclosure? DIL?
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azpeople
06-26-07, 12:41 PM
I am hoping there is someone with experience in this who can give us some advice.
We are in our 60's. We are upside down in our mortgage. Depressed market. Our mortgage is for $40,000 more than what we could sell for.
At a 5% gain in value per year, principal paid in mortgage payments, and factoring in 6% realtor fees to sell, it would take us 6 + years to make up the $40K.
Also, I am no longer able to work. We have used up our savings and have been struggling to make the payments since I have been out of work (7 months).
Our plan is (was) to leave the area in two years and live with our son.
Begining next month we will no longer be able to make the mortgage payments.
I have contacted the mortgage company to see what options, if any, that we have. They say they will not discuss with us until we are actually delinquent.
I have read about deeds in lieu of trust. Is this an option for us? How do we go about offering a DIL to our lender? How long does this process take?
Would it be better than just letting them foreclose?
If they do foreclose, how long (average) would we be able to stay in the house before having to move?
We are in our 60's. We are upside down in our mortgage. Depressed market. Our mortgage is for $40,000 more than what we could sell for.
At a 5% gain in value per year, principal paid in mortgage payments, and factoring in 6% realtor fees to sell, it would take us 6 + years to make up the $40K.
Also, I am no longer able to work. We have used up our savings and have been struggling to make the payments since I have been out of work (7 months).
Our plan is (was) to leave the area in two years and live with our son.
Begining next month we will no longer be able to make the mortgage payments.
I have contacted the mortgage company to see what options, if any, that we have. They say they will not discuss with us until we are actually delinquent.
I have read about deeds in lieu of trust. Is this an option for us? How do we go about offering a DIL to our lender? How long does this process take?
Would it be better than just letting them foreclose?
If they do foreclose, how long (average) would we be able to stay in the house before having to move?
Family Guy
06-27-07, 08:58 AM
We'll have to disregard the guy spamming our forum for his own benefit.
A deed in lieu of foreclosure is better than going through the pain of foreclosure. It will harm you credit similarly, but without the delinquencies. The lender should be agreeable to this once you get to the right person. They save on legal expenses this way as well as time.
Another option would be a Ch 7, possibly 13, if the bankruptcy laws allow you to do this in your situation. You should have the option to release the property to the lender. You should consult an attorney to see if this is the best course.
Would renting the house out be an option? This may not even be something you want to get into, but there could be a property manager in the area that could take this on for you, taking his fee from the rent.
A deed in lieu of foreclosure is better than going through the pain of foreclosure. It will harm you credit similarly, but without the delinquencies. The lender should be agreeable to this once you get to the right person. They save on legal expenses this way as well as time.
Another option would be a Ch 7, possibly 13, if the bankruptcy laws allow you to do this in your situation. You should have the option to release the property to the lender. You should consult an attorney to see if this is the best course.
Would renting the house out be an option? This may not even be something you want to get into, but there could be a property manager in the area that could take this on for you, taking his fee from the rent.
md2lgyk
06-27-07, 11:19 AM
I went through something similar about 10 years ago due to a lengthy job layoff and a depressed housing market in the area. We put the house on the market and began working with the lender as soon as we saw we were going to be unable to keep up the mortgage payments. A DIL was never discussed. To shorten a long story, the house sold 7 months later for $25K less than we owed. The lender did NOT require us to make up the difference. The loan showed on my credit report as satisfied for less than the full amount (no foreclosure) and my credit was not adversely affected. We bought another house just a couple of years later.