Foreclosure in Indianapolis>Question Details

Justin, Other/Just Looking in Indianapolis, IN

I have a home that has a mortgage of $45,000. As it sits it may be worth $25,000. I would need to invest

Asked by Justin, Indianapolis, IN Wed Jul 29, 2009

another 25,000 in repairs just to be able to sell it. The homes in the area are selling for 30,000-40,000. In other words either way I look at it I'm going to lose money. Should I consider forclosure?

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3
Dan Baize’s answer
Couple of good answers. Before saying to much Nina is correct, the biggest question is what has made you choose selling right now.
Foreclosure should be your last option, rent, short sale,renegotiate mortgage,get a room mate, think outside the box a bit.
0 votes Thank Flag Link Thu Jul 30, 2009
I agree with Nina, but want to go a couple of steps further - if this is your primary residence...

Why are you considering selling? Are you in financial trouble or concerned about declining values?

Keep in mind you have to live some place. Can you rent a decent place for the same or less than you are paying on the house now? Also keep in mind that everyone checks your credit - rentals, auto insurance, landlords, utilites, doctors, etc. Your credit card rates can even be increased because of a bad credit report. If you have a foreclosure or a short sale, it will effect your credit and buying power for several years.

If you can hang on and make your payments, this doom and gloom market will turn around!

Good luck!
0 votes Thank Flag Link Wed Jul 29, 2009
Hello, is this your primary home or is it an investment home? If it is the latter, why not consider renting it out. If you value your credit rating foreclosure should not be an option. If you are in a financial bind consider a short sale- of course you would need to prove financial distress. A short sale would not hurt your credit as bad as a forecloser would. I hope this helps.
Thanks,
Nina Mayberry
0 votes Thank Flag Link Wed Jul 29, 2009
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