RI,
All of that information, whether late payments, short sale, deed in lieu, or foreclosure will remain on your credit for 7 years. And in today's mortgage environment things are being scrutinized more and more. Word directly from my underwriter is that a short sale, deed in lieu, and foreclosure will all be treated identically if you try to apply for a new mortgage down the road. It's all looked at as financial mismanagement and you'd need to re-establish credit and stay squeaky clean for a couple years after. They do, however impact your credit scores differently because of the length of time it takes for each option to run it's cycle. A short sale or deed in lieu can be finished and done with in a few months. A foreclosure in the state of Michigan could take in excess of a year though, so it gives the lender more time to report derogatory items on your credit history.

I feel for you and wish you the best of luck
Tony

If you need to sell your house fast I BUY HOUSES! You can list your home with an agent as well but is not necessary because I am the buyer. If you have no equity, it is okay, I have programs to work around that. Contact myself or my company for more information. I would be glad to help you!

Will Robles
888.608.9190
will@firstcasasolutions.com

RI, I would suggest that as another agent said to contact your bank. I would also contact a real estate agent in your area that is familiar with how to do a short sale. They are time consuming, however, it is better than having a foreclosure on your credit. A short sale will still put a bump on it, but as I understand from lenders it does not look near as bad as a foreclosure.

I hope this information helps! Best Wishes!

The "We Buy Houses" companies aren't scams. (A few may be, but most are totally legitimate.) Their business model is along the lines of: Maximum Allowable Offer (MAO)=After Repair Value (ARV) * 0.65 - repairs.

So, let's take your house. It's not selling at $142,000. An investor would want to determine at what price it might sell for. Let's say $135,000. (That's just an example to come up with a number.) An investor would first take 65%-70% of that amount. That's between $87,750 and $94,500. Then, if the house were in good shape and only needed paint and carpeting, maybe $5,000 in repairs. So a "We Buy Houses" offer would come in lower than $82,750-$89,500. So, you're really right on the edge, depending on what your house would sell for, what repairs are needed, and whether you could bring any cash to closing, if needed.

Although, as an investor, I'm one of those "We Buy Houses" people, your better strategy probably would be to buy a bit of time with the lender, and get a Realtor to list your house for a very low price...though still above what an investor would offer. Say $119,000, for instance. Have you asked your current agent? Again, an experienced Realtor in your area could help. The question to pose, either to your agent or to another is: "What should my house be priced at so I can very 95% sure that the house will sell in 30 days?"

One other possibility, since you do have some equity in your house, is to use a strategy involving a land trust. However, that's also dependent on how the rental market is in your area. The technique, in brief, is that an investor would come in and clear up your delinquencies. Your house would be placed in a trust; you'd be one of the trust's beneficiaries. A tenant-buyer would be found to live in your house. An investor would put the deal together, and would be responsible for ensuring that your mortgage payments would be made on time. After a period of time (typically 3-6 years), your house would be brought out of the trust and sold for fair market value. You'd receive your initial equity in the property back, minus the expenses of setting up the trust, any arrearages the investor paid for, and some miscellaneous fees. That, actually, would be a pretty good option for you if the numbers (specifically, are the rents in your area high enough to come close to covering your current PITI payments) work.

Feel free to contact me for more information.

Hope that helps.

Are the companies that offer to buy your house scams? Say my house is worth 165, is not selling at 142 but 95 is owed - what could we possibly get out of one of those deals?

Contact your lender and attempt to work out an arrangement. That might involve moving the delinquent payments to the end of the loan or modifying the loan in some other way. However, they are likely to accommodate that only if you can demonstrate that from here on out you can pay the agreed-upon loan amount.

Second, contact a Realtor to get an evaluation of how much your home is worth in your community in today's market. Determine if it's possible to put your home on the market and simply sell it. Alternatively, if you do have enough equity in your home (about 35%), you can sell to an investor who will pay all cash and close within a week or two.

Third, if you don't have equity, you might have to consider a short sale. You'd sell for less than you owe. The sale would be contingent on the approval of your lender, since you'd be asking your lender to lose money--to come up "short"--on the transaction. That will have a negative effect on your credit.

Fourth: Ask you lender whether they'll accept a deed in lieu fo foreclosure. Most won't, but it could be worth a try. It'll avoid foreclosure, but will have a negative impact on your credit.

Fifth, go to foreclosure. You'd lose your house, and it would have a greater negative effect on your credit than a short sale.

Those are your basic options.

Good luck.

Ok, have you contacted your bank? Maybe you can ask for a short sale package. Maybe you can renegotiate the loan. You can also call the hotline Bush set up 888-995-HOPE. IF these three steps don't propel you into action, call me. 734-216-7845. Every situation is different. Best of luck to you and to us all. http://www.AnnArborShortSale.com