Home Selling in Lithonia>Question Details

Jaydubya, Home Seller in Lithonia, GA

My house has lost 50% of its value. There have been 3 murders in the last month in my area. I have 2 kids and a wife. How can I get out of this?

Asked by Jaydubya, Lithonia, GA Thu Oct 6, 2011

I am extremely underwater on my mortgage due to the precipitous decline in value of houses in my area over the past few years. I have excellent credit but with the bullets flying around and the mobs of neighbors fighting around me I wouldn't mind sacrificing my credit score to get out of here. I cannot afford a default judgement though... I have kids to take care of. Any ideas?

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Good thing you live in a conceal and carry state. I remember seeing Georgia has a fast track foreclosure process, and the sheriff's judicial sale is quick. If you can prove that you cannot afford your current house payment yo have grounds for help. If you have money, stable job history and assets prepare to bring money to close. You need a hardship to have the amount you are short waived by the bank. Your houses value has nothing to do with your ability to pay the mortgage.
1 vote Thank Flag Link Fri Oct 14, 2011

Many options have been given you below and one of them may be the best for you. There will be no way to know without further details. What type of loan do you have? Who is the servicer? I have not heard of ANY borrowers in GA who were required to pay a deficiency. It could happen but I have not see it. A foreclosure will cause you to wait three to seven years to obtain another mortgage depending on the mortgage type.

If your current ncome and credit will allow, cnverting your current residence to a rental could be an option. Again, many more details of your situation are required to provide you with viable financial solutions but there is only one solution for your safety.

Contact a trusted Mortgage Loan Officer and an attorney to put your mind at ease concerning your credit.
0 votes Thank Flag Link Fri Oct 14, 2011
What you cannot afford to do is to allow yourself or a family member to be physically harmed because of your concern about your credit ratings, a default judgment, etc.

If things are as bad as you depict, take action to get out NOW and don't worry about the credit or financial consequences...consider only the safety of your family. Credit can be repaired over time and judgments can often be negotiated over time, but if a family member is physically harmed, or worse yet killed, everything else will pale in comparison and you will surely regret your decision to stay.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Fri Oct 7, 2011
Hi Jeremiah,

Yes, we read the question and saw the item about the defualt judgement but there is not a way around that particular issue unless the person has money to bring to the selling table to cover the shortage, as you can see from the multiple answers already posted. If he only wanted a reduction in the amount of his mortgage payments and not to move out of the area, then there are programs out there to help with that issue but with his specific issue, there are limited options. If you think there is a better option, then by all means, please post it.
0 votes Thank Flag Link Fri Oct 7, 2011
Wouldn't a short sale always cause a default judgment which the seller is stating he cannot afford? Do you guys really read these questions before responding?
0 votes Thank Flag Link Fri Oct 7, 2011
Hi Jaydubya,

One of the first things you should do is talk to your lender to see if a short sale is possible. You will need some hardship to qualify for a shortsale. I am not sure if the crime rate qualifies but it would be good to discuss with the lender the situation and maybe, if you have the police reports of the recent murder (s) and gang activity to send to them, it would help. The next step would be to find an agent who can help with the shortsale and interceed with the bank. Your main problem will be actually selling the home. If the crime is as bad as you say, a lot of buyers will shy away from the area. Renting out the house is a good option but the same crime statistics will have a lot of renters shying away from the area too. My best advice is to discuss it with the lender first. Prepare them for the possibility that you may decide to sell the house for less than it is worth and find out the qualifications this lender has to proceed with the shortsale. Get those reports or at least news articles of the murders to show the bank how close these occurred to your residence. Get the name and fax/email address of the person you should send them too. I am sorry I could not be of more help but I wanted to give you a realistic scenario. The safety of your family is the most important issue and while you may not want the hit to your credit, it may be the only option.
0 votes Thank Flag Link Fri Oct 7, 2011
Assuming you do not want to bring money to closing if this current house can be sold, Jaydubya, your last sentence starting "I cannot afford a default judgement though..." sounds to this agent like you have only two other options. Those are turning the home into a rental or attempting to structure a Lease/Purchase, then getting a contract signed and finding your next principal residence. Please call, text or email if we might help further. Good Luck!

Michael Hammond


0 votes Thank Flag Link Fri Oct 7, 2011
I am a realtor with metrobrokers and have lived in lithonia for over 10 years please contact me at 678-406-8475 and I will give you all your options
0 votes Thank Flag Link Thu Oct 6, 2011
If your credit is excellent like you say, how about checking with a loan officer to see if your income can sustain another loan for another house. If so I can assist you in selling your current home and get you into a new home. Email me at travis@myagentistravis.com so that I can possibly start you on a new course.

I look forward to working with you.
0 votes Thank Flag Link Thu Oct 6, 2011
I'm sorry for your situation. Family safety comes first. If you are not safe, move somewhere safer. Renting will be the least destructive to your credit. If you can't get a tenant for what you owe, you may get close. If market conditions change you may find yourself in a better equity position in a few years.
A short sale may be the next least harmful scenario. It will hurt your credit some and potentially limit your opportunity for another mortgage for a while, but you will be in good company.
I don't know if GA is a "recourse" state or not. In some states, the lender is required to accept the home as full compensation if you were to walk away or do a deed in lieu of foreclosure. This would be a good subject to explore with a local Real Estate Attorney. If you have a second mortgage, they are more likely to be able to pursue you after foreclosure, but again discuss this with an attorney. Best of luck.
0 votes Thank Flag Link Thu Oct 6, 2011
For someone, like myself, who also lives in Lithonia I understand the area. I do have a few questions to ask you and be of service to you. Please call me at 678.443.8817 or email at contact@matlhomes.com
Jennifer McClue
BHGRE Metro Brokers - Northlake Office
4073 LaVista Rd Ste 373
Atlanta, Ga 30058
Web Reference: http://www.matlhomes.com
0 votes Thank Flag Link Thu Oct 6, 2011
Sounds like a short sale to me! Let's get it listed and get it gone...
0 votes Thank Flag Link Thu Oct 6, 2011
For selling the property, you would either have bring money to closing or do a short sale, if you qualify for one. You could also consider converting the home to a rental property.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Conventional | FHA | FHA 203K Renovation (Streamline & Consultant) | HomePath® |
HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Thu Oct 6, 2011
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