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We are thinking of foreclosing because the short sale just doesn't seem to be working. Again, we bought a home in SW Florida in 2005 for 159,000. We have had the home on the market since February and started out at 174,000. We are down to 139,000 and still no lookers. Our realtor just keeps telling us to see every two week and if no lookers to drop again. We talked to the 1st lender and they said they might short sale depending on the price. They had their own appraiser in but won't tell us what she said. Our realtor said around 135,00 but it keeps falling. We know we cannot afford to live here anymore and can't keep up the payments. We are both working 2 jobs and have a 12 y/o daughter here. We read in the fine print yesterday that in January 2008 it will go up 300 more dollars a month. We are willing to go back to the midwest and rent for 3-4 years and then try to buy again after we get our credit back on track and not go with an ARM. Right now we are not late on our mortgage but know we cannot physically work each two jobs and maintain our life and also with our daughter. Our marriage is falling apart. We are thinking of calling up the lendors and just walking away. Any help we could get on the reprucussions of this would be greatly appreciated. We are so deparate for help. We are living so frugally and have depleted every bit of our savings. Please advise if you can. A foreclosure doesn't even scare us anymore we are so desparate.
Wow there is a ton of info on "how to avoid foreclosure", but not much on how to just let a house go.
My opinion is that a foreclosure costs the lender extra money, so I'm sure they'd prefer you just give up the house to them, instead of forcing a foreclosure. This might help eliminate some of the money they will try and collect from you in the future. If it's going to be a substantial amount, you may want to talk to a BK lawyer...
I'm so sorry to hear that you are in this situation. I wouldn't even know where to send you for help. There has to be somebody out there that can advise you on what to do. Try as hard as you can to keep your family together. Remember you can go into foreclosure but you can't replace your family. Keeping you in my prayers.
Location: Moved to town. Miss 'my' woods and critters.
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Your desperate situation is being shared by many, which is no comfort to you, I know. But, have you had a serious discussion with your lender? Perhaps a 'sit-down' and straight talk from both sides? Surely, in order to maintain what credit you have at this time, the lender would be considerate enough to listen to you and advise and consent to a solution that benefits both of you.
I remember my Mother having difficulties at one time such as yours and her conference with her lender led to reduced payments for a few months and when she sold her home she did not make a profit.
Barely able to pay the mortgage off. But, her talking with her lender did the trick for her. Communication, just like location, sometimes is the solution/key to most difficulties such as yours. I do wish you the best and hope that you two can rekindle what must have brought you two together in the beginning.
For all of your sakes, please don't give up. Find a financial adviser, someone else to guide and assist you both. Good luck to all of you.
Thank you all for your responses. We have looked into a short sale but not sure if there any buyers out there. We need to rethink with our realtor and maybe bottom drop price. If the lendor won't work with us then just walk away. I know there isn't a lot out there about it. We have two close friends who have had to foreclose in that couple of months and it has been very hard on them.
Our payments right now on the home we paid 159,000 are at 1750.00. So there is no way we could get that rent for this. So many others in the neighborhood have walked away and are renting so now we are getting shaky renters also. In fact two right around us have been evicted for tearing the places up and their behaviors. But landlords are so desparate to rent to anyone because their are so many homes for rent. The payment is so high also because our homeowners tripled since we moved here. Now in January 2008 the payment will go up over 300.00 more a month.
I feel very bad for you and anyone else in your position. It's very sad. I hope you try everything possible to save your credit.
However, if that's not possible and you know it, make sure you have what you need for the next couple years. If you need a car or something, buy it now before your credit is ruined. Stop paying on your house and let the bank foreclose. You will get several months 'rent free'. Don't feel too bad about this, the deadbeats do it all the time. Save the money. You will have to pay a higher deposit/more in advance the next time you rent. Or better yet, get your rental lined up and paid for before your credit is shot.
None of this is easy. Welcome to the true American counter culture. The shadow people who travel under the radar because of lawsuits, child support, and illegal status. Be sure to pay everything you have left on time. This will help you get your credit back.
Location: Ohio, but moving to El Paso, TX August/September
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Have you tried to contact your lender about refinancing with a fixed rate? Or shopped another lender to refi with a fixed rate?
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