Lifeâ€™s most unfortunate circumstances are unforeseeable, like unemployment and serious illnesses. When you find yourself in this predicament and youâ€™re considering giving up your home, it is important that you understand the significant difference between a short sale versus a foreclosure.
One of the most damaging things to you credit score, reputation, and personal dignity is the foreclosure process. Foreclosures remain on your credit as a public record for up to 7 years.
An alternative to foreclosure is a short sale. A short sale means selling your home for less than your mortgage balance. You will still owe the balance of your mortgage in many cases. Your real estate agent or attorney can negotiate the remaining balance. It is important that you allow an attorney to review your contract, as they are usually negotiated by banks and in the favor of the bank.
Itâ€™s unfortunate that youâ€™re going through this troubling time. If youâ€™d like to know more about a short sale or a foreclosure and the effect that they can have on your credit, download my free eBook 12 Tips to Buying Real Estate in Southwest Florida.
Contact A.J., The Real Estate Professional, today! Or call 239-565-7867.
I answered this question earlier, before you elaborated and also added some info below. The bank will ask for bank statements when deciding on the short sale, so if you have 70k in cash between savings and checking, they will most likely want some of it in order to approve the sale. You REALLY need to talk to an attorney.
But what I really wanted to comment on was the amount of rent you can get for your home if you rent it out. This must be a really nice home with pool, maybe waterfront, to garner that much rent. How about trying to get a loan modification, then rent it out and wait on the market to recover somewhat. Upside down by 70k is not all that much when I think about all the short sales I have done where some are 100's of thousands of $$ upside down -- one was $450k down.
Here's is an answer you just may like, and is based on my 10+ years in mortgage banking. Depending on your current debt-to-income ratio (how much you pay in bills compared to how much money you make per month), you may be able to do the following:
Apply for a mortgage for the new home, with myself or any reputable Florida lender.
Using both your own and your fiance's income, we may be able to qualify you for the mortgage on the new home. Even if you had a family member that was willing to "co-sign" we could utilize their income even if they wont be living there. This is referred to as a non-occupant co-borrower and is allowable on certain loan programs.
Worst case scenario, you could find a lease to own home that would allow you to move in immediately and purchase the home several months down the road. Once you have filed your 2011 taxes in Jan/Feb showing the rental income and proof of your new rented residency, you will be able to utilize the rental income to offset the mortgage payment on the old home, even if you still take a few hundred dollar loss per month. With the drop in home prices, it is VERY possible to find a newer, larger home for much less money, helping to mitigate the small cash flow loss on the rental property.
By shopping intelligently for your new home, you could arrange it so your total monthly expenditure doesn't exceed what it currently is. The bottom line is that there are many more solutions than have been presented here utilizing careful financial planning and creative financing. A good mortgage banker is the next person you should speak to. They will be able to present your options, allowing you to make an informed decision.
I wish you the best of luck and of course, don't hesitate to call :-)
239 989 2950
I think everyone has a point...I agree with getting legal advise and contacting a real estate pro. I was unclear, however, what you meant by "MOVE" into another home. Does your fiance have a home you are considering moving into? Are you considering renting or buying? Best of luck to you. If you need a realtor, please don't hesitate to contact me. I can help you with both renting or buying your future home.
Maxim Realtors LLC
I would recommend that you talk to your bank and you talk to your attorney--they would be the best ones to give you the advice that you need.
Myke Triebold, GRI, LMC
Re/Max Island Harbor
I too, of course would be happy to ask for your business.
Don't hesitate to call if you have further questions and Good Luck!
Short sale it for sure. Call me if you need help selling your existing home or finding the new one.
Make sure the new home is in your wife's name only. Chat with an accountant or lawyer to cover any legal bases.
Kevin Cloutier REALTOR
Southern Premier Realty
Cape Coral, FL 33914
I would suggest sitting with a trust worthy experienced professional to review you present and future goals.
I would suggest beginning witha tax professional and Realtor to help gather the necessary information so that you can make good decisions. You and your future husband don't need financial issues to get in the way of your new life together!
If you need a Realtor, please feel free to give me a call.
Good Luck to you!
Broker/ Gulf Access Realty
or B.) Contact an agent to determine if you are a candidate for a short sale. I have completed multiple short sales succesfully. If you need more information on how a short sale works give me a call.
Getting a Short Sale through is tough enough in real Hardship situations, but you will be fighting an up-hill battle.
Another option would be to do a DEED IN LIEU, where by you give the Deed to the Bank in exchange for the Note and a letter stating that the Loan is Paid in Full.
This is quick, only semi-painfull, and your chances are so-so.
Talk to a local Realtor and see what you come up with.
Good luck and may God bless