Your last response is very disturbing to me. There could be a lo t of problems. First I would start the short sale process & get it listed & filling out all the papers for a short sale. You could stop paymenhts after you receive an offer to purchase your home & not before. Do not put your money in someone else's account..That's asking for trouble. You do not need to contact the bank to start the short sale, I have a short sale negotiator that handles all of that. They do not charge the client for their services, they charge your bank at closing.
I hope this helps you to make a good decision,
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"Ethics aside"? Doesn't that bother anyone here (except perhaps Mike)? Tell me: When is it right to put ethics aside? What are your ethics worth? $5? $40,000 (in Scumdog's case)? And there are plenty of headline news stories today--from a Freddie Mac consultant who only provided historical analysis to coaches who witnessed something in the showers--where it appears that ethics may have been put aside. Point is: Ethics can't be put aside.
And even after Scumdog posted with some additional details of his plans--and I'll acknowledge there's a lot of that going on--only Sigrid even appears to have addressed the issue of stashing money in the girlfriend's account.
Granted: Telling a person that ethics are an integral part of any decision may not sway that person's decision. But isn't it important to at least recognize the importance of ethics in the decisionmaking process?
You really need to contact an attorney, they can give you the best advise. As realtors we are not qualified to give you legal advise.
With that being said, when you do a Short Sale you will have to be deliquent, once you go deliquent, the bank can forclose on you. Once they foreclose on you your credit is effected. Get all your questions answered by an attorney before you do anything.
You sound like a nice person who has a concious and only wants to do the best thing in this situation.
You might even consider renting your home, there are alot of people looking for rental properties. This could help with your payments.
Good luck, if you need further assistance feel free to contact any of us.
Pam Bava, Realtor
Have you tried doing a modification for your loan instead of a refinance? What is your debt to income ratio? You really need to talk one on one with a Realtor that can explain the different avenues to you. If you have legal questions you'll need to speak with a Real Estate attorney since Realtors cannot give legal advice.
If I can be of any assistance do not hesitate to contact me.
Have a Great Day!!
Karen Paytas, GRI, CMS
Real Living Kee Realty
Would it be unethical for the Lender to sue you for the difference?
You think this would be a good gamble?
By the way, last month HARP was extended and the 125% limit was lifted.
Good luck and may God bless
You will still be 7,694.14 underwater on your property in 10 years compared to short selling the home now, buying again in 2 years, you would have 32,459.42 in equity in the same valued home with the same amount of appreciation.
Best of luck and find out what the laws in your state before making a decision.
I'm a Warren based Realtor! I too would recommend a short sale. Have you talked to anyone about the HAFA program. Sometimes once you attempt a shortsale a lender will be more apt to consider a modification. If you need assistance feel free to contact me.
Real Living Kee Realty
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I appreciate where you are;
The Lenders just haven't been doing Modifications.
It would seem that the determining factor for you is time:
If you are anxious to resolve this and move-on, you might negotiate a Deed-in-Lieu: This is where you hand them the deed and walk away. If you do this, get them to give you a letter stating that the debt is paid in full; you may want to involve an Attorney in that, the wording could be crucial and it would be worth spending the money on him.
The reson for this, is that Michigan is a RECOURSE State; meaning that the Bank can and will come after you for the deficiency.
If you can wait, you should try to do a Short Sale: Please contact a Realtor and have them handle this for you.
In either case, be aware of your Home Insurance and your Property Taxes; both of which you are probably paying with your Impounds. Delinquent Property Taxes probably will not disappear; they will follow you.
Good luck and may God bles
I'm sure you're not a scum dog. The absolute worse thing you can do for your credit is to forclosure on your mortgage. You can still do a short sale. Most short sales are done to have the debt difference forgiven & no deficiency judgements will be pursued. Yes, they can come after you years later after they think you're restablised. In doing a short sale you will need togive them alot of information including all your debts & hardship letter. If they determine that you are not a hardship case then you can still do a short sale & either pay the difference or they could give you a personal loan for the difference. You have nothing to loose by trying. If the difference between what the home nets & what you owe is forgiven, then your score will still go down but only about half as much as if you had forclosed.
Your credit score effects every aspect of buying, including getting a lease for a car & even car insurance. Yes I do know of someone personnal who is being persure for the deficiency after he foreclosed on his house.
I am a SFR (short sale forclosure resource)certified Realtor. Let me know if you need more explaination. I would be happy to assist you.
Have a wonderful weekend,
E-Pro & SFR Certified Realtor
My dad does have some equity in the house (I'm not sure exactly how much), but still owes about $59K on his mortgage. I would be helping him by effectively taking over the mortgage payments (I would not be living there for free), and helping him avoid the hassle of dealing with renters. Plus he has lived there over 25 years and I kinda grew up there so there's some nostalgic value to keeping it in the family, too.
As far as the "enough of a financial hardship" statement, when I had tried to renegotiate my mortgage previously, my balance sheet indicated about a $500 a month deficit yet I was still denied. And I was only asking for them to lower my interest rate. Realistically my deficit isn't quite that bad once I figure in my yearly tax refund. However, I have cut out some expenses and am now working weekend overnight shifts for extra salary.
Anyway, basically I feel like I am in a situation currently where I can survive relatively comfortably, but I'm never going to get ahead and won't be able to even start to put aside more than a meager amount of savings until my student loans and mortgage are paid off when I'm 57. I'm trying to decide if this move will help to improve my long term outlook, or just screw me worse.
P.S. Asking ethics aside doesn't mean I'm not weighing the ethics into my decision, but just that I want objective advice on these issues.
Short sale process starts with listing your house at the appraised or current market value. in the meantime whoever handles this process for you will require your financial information like taxes, bank statements, pay stubs and proof of hardship and financial statements and so on. The underwater mortgage might be enough to show hardship, especially that you have other bills to pay and those count. It is best to work with company that is experienced in the process, usually attorney firm that is experienced in dealing with banks. DO NOT PAY ANYONE UP FRONT FOR SHOR SALE! Once you receive an offer they will submit it for review. This process take some time even 3-4 month, depending on the mortgage company your home loan is with. If the transaction closes you have to make sure that your lender gives you letter forgiving the difference between the amount you owned on your loan and the proceeds they got from the short sale. Otherwise they can go after you for the difference and they usually do.
If you are interested in pursuing short sale as your option I can give you contact info to a professional company I have dealt with on the short sales I had listed. Also, please feel free to contact me for more detailed info about short sales, I have handled several. You can email me at email@example.com
My office is in Shelby Township and I am very familiar with Warren area.
You don't explain how moving into your dad's property will help your dad. If he owns it and there's positive equity in it, he could sell it. That cash might do him more good than renting it out to you or allowing you to live there.
A deficiency judgment is a legitimate concern. You say you think they rarely pursue them "when they realistically have very little chance to collect." But your case might be different. You acknowledge you already have sufficient income to pay your current mortgage. You'll have even more disposable income if you cut your housing costs. And you admit you've been unable to "demonstrate enough of a financial hardship." Sounds as if, in this case, the lender might have a chance to collect.
Further, a foreclosure is going to negatively affect your credit. And, yes, that would show up when you applied for a new car lease. I don't know whether we're talking about a higher monthly payment, or about whether a lease would be out of the question. But a recent foreclosure certainly is going to make it more difficult.