Foreclosure in San Francisco>Question Details

Klove, Both Buyer and Seller in Saint Louis, MO

how can u sell your home as and just walk away even though you got a loan modifactin?

Asked by Klove, Saint Louis, MO Wed Jul 21, 2010

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6
Alex Greer’s answer
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Thu Aug 15, 2013
You can do what ever you want. Not sure why you would of gone through that long modification process to let your property be foreclosed, but if you want to let it be foreclosed, you can do that. When you walk away, you are still liable for the home until it is foreclosed.

Credit wise it usually makes more sense to sell your property. You did not indicate if your underwater or not. IF your under water you can try to do a short sale to save your credit. But I would look for a local expert to give you options and advise. What ever decision you make, you want to make sure it is the right decision.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Sat Jul 24, 2010
Hi Klove,

You, of course, can do what ever you feel is best for you and your family first and foremost. However, there are potential obstacles that may arise in the future. Your modification may have terms within the document that provide your lender with additional options or ability to pursue you post foreclosure. The main thing is to consult your Attorney and find out if the Modification documents you signed give them the ability to have any recourse action against you.

Also, if you can afford your modification, I would stay in the house. Its your home and you can afford the payment now hopefully with the adjustments. If you can't afford it, hire a Realtor to sell it via Short Sale if you owe too much.
A foreclosure is really a bad option for your credit short and longer term. We dont know what underwriting standards may be in 3 years and this may affect your ability to buy any large ticket items. In my opinion should not be pursued if other options are available to you.

Christopher Pohlman
DRE 01838445
1.888.669.8881 Toll Free
415.894.2469 Cell
Christopher@YourNewRealtor.com
0 votes Thank Flag Link Thu Jul 22, 2010
If you got a loan modifciation you can indded sell your house. If you owe less than it is worth, by all means it will be easier than if you owe more than the house is worth, then you will need to start a short sale process. Where you have a loan modifciation, make sure you make your payments or in those loan mod papoers, you probabily signed away your rights to due process on a foreclosure and they can foreclose quicker.

Contatct your bank for more info on what they require for a short sale an dthen hire an agent who is well expereinced in short sales.

Please see my blog for mor etips and info on getting a short sale approved
0 votes Thank Flag Link Wed Jul 21, 2010
Your question is worded somewhat awkwardly.

Are you asking how one could sell one's property as-is or walk away from it even though one has already received a loan modification? If so, then some people get loan modifications to help make their properties easier to sell. Others do it, because their circumstances have changed (ie due to a job loss; job-related, forced relocation; excessive, unplanned medical expenses; a death in the family [requiring them to relocate perhaps to take care of an ailing relative]; divorce; etc). Others do it strategically (in the case of strategic defaults), because it makes more business sense to do so to them.
0 votes Thank Flag Link Wed Jul 21, 2010
A bit unsure of what you're asking....

If you got a loan modification approved already, and you still want to walk away....

Have you tried to do a short sale first? Although it takes several months to process, during that time, you can continue to live in the property while working out the sale. You have to prove hardship which can be a combination of many factors/reasons (loss of job, decrease in income, increased expenses, job relocation, family situations like divorce/separation/death, drop in market value, etc).

At least the effect on your credit won't be as devastating as a foreclosure or bankruptcy.

If you want to leave your place, you can do that while the house is being offered as a short sale. At least try that. There are agents who will be willing to work with you.

Another question for you: you identify yourself as both a buyer and a seller....are you buying a home now, and then walk away fron the one you have? If you're considering Buy and Bail, do note that is considered and treated as mortgage fraud.

Care to elaborate what you're thinking of doing?
0 votes Thank Flag Link Wed Jul 21, 2010
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