You may also want to speak with your current mortgage servicer and discuss the possibility of a Loan Modification with them.
I know your situation is very hard right now, and believe me, I have had other clients in that same situation...unfortunately all too common in this economy. There is no easy choice here as each choice other than selling your home or renting it has consequences.
My advice would be to take the job, obviously, because that is what is best for your family, choosing feeding your family or not feeding your family is a no brainer.
I would advise you NOT to try and buy a home, then let the first home go to foreclosure ( I am really surprised that anyone even brought that up). That is, quite simply, fraud and fraud has legal consequences and banks are no longer looking the other way, they are pursuing these cases in court.
You also need to know that simply walking away and allowing the home to go to foreclosure can have complications. There are tax and legal consequences that may enter into the situation such as the bank obtaining a deficiency judgement against you (for the difference ibetween what is owed and what they sell the property for), or reporting to the IRS the difference between what you owe and what they received as taxable income .
There might be another alternative. Talk to your servicing bank (who you make your payments to) and discuss the possibility of a deed in lieu of foreclosure. Since you have had the property on the market for a while, this may be the good option for you And the bank. Make sure a release from liability is part of your negotiation. If you are uncomfortable with this negotiation, talk with an attorney.
All of these scenarios will , of course, affect your credit, but that is a fact of these times. You will probably not come out of this unscathed. So, unfortunately, you will be renting for about 3 years, but after that, once your family is relocated and settled, you can begin to build your life again and eventually buy a new home. I wish you well.
You need to speak with a local agent familiar with distressed property sales and an attorney. As I understand it you have these options if you can't sell for what you owe.
You can do a short sale, this is done in conjunction with the bank and is a real estate specialty. The financial consequences are less severe than a foreclosure.
You can do a deed in lieu of foreclosure, which shortcuts the process, starts your financial repair clock ticking earlier but still carries severe financial consequences.
Finally you can just ignore it and let it go into foreclosure. The timeframe is unknown and once it is complete you may not qualify for a new mortgage for 5 years or more.
This is just a brief overview and not legal advice. Seek legal advice from a local attorney because state laws vary and you need the most up to date information to base your decision on.
We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.
Eli Givoni, Director
Short Sale Department, LLC
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