Foreclosure in 08525>Question Details

Becca, Home Owner in Hopewell, NJ

Options for vacant property

Asked by Becca, Hopewell, NJ Fri Feb 1, 2013

We moved out of our house because it was under contract; the sellers backed out. We then rushed to rent (for less than our mortgage) and had the tenants from hell who caused a mold problem in our basement. Based on our previous sale price, we would owe less than the house is worth if we fixed it (because we'd have to take the cost of remediation from the equity line mortgage) and asked for US bank to do a deed in lieu. Any words of wisdom as to whether the bank will take the house? What else do we do? We're losing money every month on this house that is now vacant.

Help the community by answering this question:

Answers

6
First of all you can not do a short sale on a rental or investment property , it has to be your primary residence & you have to be able to prove financial hardship. Before you consider that route, you might want to call your homeowners insurance company & tell them that a water problem caused mold in your basement. If it is from a leak, you may be covered. If it is not covered get a few other estimates to correct the problem. If you can't afford to do the work you might want to consider selling the house as is & offer a credit for the estimated repair at closing. Always discuss your options with your realtor & attorney before making a decision.
0 votes Thank Flag Link Sat Feb 9, 2013
The mold problem was not caused by something covered by insurance unfortunately.
Flag Sat Feb 9, 2013
sell as is.

If it has to short sell then so be it.

Let me know if you need a good Short sale agent in hopewell or anywhere else.
0 votes Thank Flag Link Sat Feb 2, 2013
Well, the problem is that we are not upside down until we do the work. And we can't do the work without taking additional money out of our equity line. We have already applied for DIL, waiting to hear from the bank which said not to do the work until they give an answer because they'd take the property as is, which further sets us back if they deny since we can't have it ready the next day. Also, foreclosure is not an option, I'd lose my job.

We have tried renting it out and got a huge headache and no rent in return which is the current financial pinch.

Sylvia, what is a value play sale?
0 votes Thank Flag Link Fri Feb 1, 2013
On the market, priced to move quickly.
Attractive price, buyer takes all. No financial outlay for the seller. Value play.
It sounds as though you are in a position with some maybes this way or that.
It is really difficult for me to explain the many details involved as I am "shooting from the hip" insofar as what I have learned from you.
Believe me- NJ has the highest rate of homes under water ( you can google that fact!). I understand you appear not to be there just yet.Lots of decisions need to be made on your end. Like anything else, one step at a time. get informed, get educated as to options and alternatives. There is always a solution.
Becca-
Flag Fri Feb 1, 2013
A deed in lieu is extremely unsual for a bank to accept.The burden is on them. The banks are financial entities. Google deed in lieu

Certainly ask, but be prepared for the answer. What you may find is that they will agree to what is known as a "cooperative short sale" whereby they agree to a short sale and actually give you back several thousand dollars toward a move ( I understand you rent).
A package of documentation must be presented to them which they provide to you, the seller.

A conversation with a short sale expert is vital. Not just anyone who calls themselves knowledgable but can support their results.
Good luck. Also sounds like a value play sale. Banks are also accepting approx 87% of the ask price so it may encourage an offer.

Hope this helps.
Sylvia Morrison keller Williams 609 306 5282
0 votes Thank Flag Link Fri Feb 1, 2013
Understand that Realtors are not Lawyers nor Tax experts; confirm everything! Okay?
As a Rental, you have a tax deduction on everything, especially losses.
The relevant question is; Can you handle the monthly loss, and hang-on until it is saleable?
The loss you are suffering may be less than the losses you see, both material and the damage to your Credit, if you do a Deed-in-Lieu or a Shortsale:
You want to talk about these things and your options, with your Tax person and a Realtor.
0 votes Thank Flag Link Fri Feb 1, 2013
If you are upside down in the home - a short sale would be another option.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Fri Feb 1, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer