If you walk away from your home, you will definitely ruin your credit. Are you living in a state where the lender can come after you for the difference? I cannot imagine not looking at your credit if I was a landlord. I would not rent to someone who walked from their home. Also don't look for a new job after a foreclosure since most employers now check applicants creit before offering them the job. Your homeowners insurance may go up since you are considered a risk.
In other words, I don't believe in strategic foreclosures.
Best plan would be to sit down with a local lender, one you trust, and see what options you have. You seem like a very sensible person, so I would exhaust all options prior to letting them take the property... it takes a long time to fully recover from a foreclosure/bankruptcy situation, especially if you might have alternative options...
Let me know if i can help!
Allen & Assoc Realty
Iâ€™m not trying to shirk my responsibilities but I try to make the best decision I can in everything I do. For example, I shop insurance companies every time itâ€™s time for renewal. Not because I am trying to undermine the system, rather Iâ€™m trying to stay current on the best deal out there. It keeps the playing field level and honest. Thatâ€™s the reason that the free market system is better than communism. It responds immediately, fairly and self corrects. If the housing market is imbalanced, the free market will correct that. And if people get screwed in the process, then thatâ€™s how the cookie crumbles.
Id like to take a poll of how many guys out there have stayed with a woman that has turned out to be a complete psycho after a year of marriage. Chances are good that they are worried about what their friends may think. So they stay with them for years and years until they become bitter old pills (like Hank). They just get old and regret the day he met her. Sometimes in life you get a bad tooth. Things happen. Get a root canal, have it capped or even get an implant. Sometimes the best thing to do is â€œcut your losses rip that sucker outâ€! You have options you know. You donâ€™t have to live your life like a moron thinking that you are stuck in your predicament. Things change, people change and laws change. If you sit back and take it: You deserve what you get. Iâ€™m just making a post and thinking out loud to see what might be out there that I donâ€™t know about. Thatâ€™s how you find things out. You just ask. Chances are that you will find it when you ask. I guess you can say that Iâ€™m throwing some Hank against the wall to see what will stick.
I digress. I want to thank the others that have chimed in. I appreciate your input. I just wanted everyone to know that I have contacted the ones that offer something other than the obvious things.
It will likely hinder your ability to get credit in the future. For any credit you are able to get, expect to pay higher interest rates on that too.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
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Something tells me you are in the airline industry or work at Dobbins. :)
Your challenge is one faced by many homeowners. The ones I have worked with do one of two things: a) buy a new home and then "short sell" their current home or b) buy a new home and rent their current home. In both cases, you will need to qualify with both mortgages (current one and new one). If this is a possibility, you would likely want an FHA mortgage with 3.5% down unless your current mortgage is an FHA loan. As other respondents have mentioned, short selling or allowing the home to go into foreclosure first will preclude you from buying for at least two years in the case of the short sale and 3 years for a foreclosure.
One other very important point you need to know. Lenders have caught on to the "buy and bail" phenomenon as it is often called. If you leave your current primary residence for another primary residence, the lenders will require you to have three months of mortgage payments for both properties as cash reserves in addition to your down payment. So for example if you are buying a $200,000 property with an FHA loan and your curent mortgage payment is $2000 and your new mortgage payment is $1400 you would be required to have assets equal to $17,200, which includes a $7000 down payment, $6000 for reserves on your current mortgage and $4200 for reserves on your new mortgage. The reserves will remain yours, they are just additional assets that let the lender know you can continue to pay both mortgages for a period of time.
I have guided many homeowners through this process and would be happy to discuss this further if you would like more details. Email me if you are interested discussing this further.
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
This bad news is if you do let it go into foreclosure or do a short sale it will be tough to get a mortgage for some time. There really is not an easy answer on this situation and tons of homeowners are going through it.
If you want to get in touch with a good real estate agent or talk offline about your situation in more detail just give me a call on my cell below.
Atlanta's #1 Most Trust Loan Officer