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.
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.
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.
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.
I look forward to working with you.
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.
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