Foreclosure in 95046>Question Details

ttomser, Home Seller in San Martin, CA

i have unpaid back payment of $80000 -my question is should i pay and keep this home instead of forecloure

Asked by ttomser, San Martin, CA Thu Sep 20, 2012

Help the community by answering this question:


I would recommend that you check with a real estate attorney to have them assess your specific situation and to go over your options with you. They can tell you the pros and cons of foreclosure vs. bankruptcy vs. short sale vs. paying. Some attorneys are willing to talk to you over the phone for free to assess your situation and give you some basic advice. Your local Association of Realtors may be able to refer you to an attorney, or you can contact me and I can give you the contact information of someone in my area (LA's South Bay Area).

Caney Arnold, Realtor
DRE# 01916191
1 vote Thank Flag Link Thu Sep 20, 2012
Hi I am a local agent and would be happy to come by and discuss this in person with you.



0 votes Thank Flag Link Thu Sep 20, 2012
I agree with the other realtors who say speak to a RE attorney and your CPA. That way you will do what makes the most sense for you.
At your service,
Certified Distressed Property Expert
0 votes Thank Flag Link Thu Sep 20, 2012
it is financial decision need to be made not real estate law i thnk right answere is to see financial advosor not RE attorney
Flag Thu Sep 20, 2012
If you can afford to pay-pay. FNMAE & FHLMC have announced that they will go after strategic defaulters.
0 votes Thank Flag Link Thu Sep 20, 2012
That’s a personal question only you can answer. If you want to know how a lender looks at it if you want to purchase another home it doesn’t make much difference. The foreclosure will probably make the time line a little longer, but not that much in the overall scheme of things. If you are behind that much on house payments your credit report is whacked almost as bad as a foreclosure. Technically it is a default, but traditional type mortgages are going to require a clean up period of paid as agreed just like they do after a foreclosure, just not as long a period. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Sep 20, 2012
Talk to a qualified real estate attorney, a CPA or financial advisor and your Realtor to help you determine the best course of action for you. There is no "blanket" or general answer that can be provided to you even with a few more specifics. Get professional help and be prepared to show them your records for your best answer.
0 votes Thank Flag Link Thu Sep 20, 2012

Your worst option is foreclosure. This will hurt your credit and future ability to buy a house again the most. If you decide you do not want to keep the home, then your best option is a short sale, where you hire a realtor who sells the home AND negotiates with your current lender on your behalf to relieve you of your mortgage debt. This will hurt your credit and ability to buy a home in the future the least.

If you decide you want to keep the home, then you will have to work out some sort of payment plan with the bank. You may want to try a loan modification. If you are currently behind on your mortgage, a re-finance under the various government plans is not an option for you.

The foregoing said, the most important question to answer is, which do you prefer, go or stay? What are the pros and cons for keeping or selling the home to and your family you personally? Sometimes having an informed person who can explain each of your options and most of their consequences from an experienced point of view can be very helpful in coming to a clear decision that puts you in a calm place with a good game plan for your family. I am a realtor, loan officer, and paralegal with real estate experience. I can listen to your story, explain the two processes you may most want to consider in detail, and identify questions you might want to ask an attorney or tax adviser.

If after our conversation and any follow up conversations with an attorney or tax adviser you want to sell, rather than be foreclosed upon, I'll be happy to represent you and protect your interests as best I can. If you decide you want to stay and try a loan modification or re-payment plan, then I'll do my best to find you are real live person at the bank that services your mortgage that can help you through that process.

You can contact me through my phone number 408-639-0211 or my email:

Whatever you eventually decide, I wish you luck and Godspeed.

Mitchell Pearce
0 votes Thank Flag Link Thu Sep 20, 2012
Hi ttomser,

Personally, I HIGHLY recommend you speak with both a RE Lawyer AND a CPA to jointly craft a course of action that considers how to reduce/remove your potential legal/financial exposure. This subject matter is not necessarily "black and white" regarding a “best move”.

If you need to find a CPA you can find one here:

0 votes Thank Flag Link Thu Sep 20, 2012
Anything that a Realtor says to you, could (and probably would) come back to bite them on the butt:

Just being Upside/Down is not a good reason to renig of a Contract; although it is being done everywhere.

You should be talking to your Attorney and your Tax advisor; not us!
0 votes Thank Flag Link Thu Sep 20, 2012
You situation is very personal and specific to you and we here should not give you a yes or no on this question. It requires a thorough consultation with you and as Caney suggested, meet with an attorney. Your financial adviser is also another good resource.

What is your goal? Sometimes it is difficult to see clearly, so I suggest you write down what you would like to see happen and then see what you need to do to accomplish your goal.
Web Reference:
0 votes Thank Flag Link Thu Sep 20, 2012
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