Home Selling in Hanksville>Question Details

Worried, Home Seller in Hanksville, UT

hi, my husband and i got a usda gov loan to build a home a few years ago. Now he is loosing his job and we have to move but have been unable to sell

Asked by Worried, Hanksville, UT Thu Feb 17, 2011

we have been unable to sell or even rent it out. We are wondering if it would be best for us to try and buy a home where our new job has taken us and allow the bank to take the other, and is that even a possibility, or are we going to have to just let the bank take the home and rent for years on end. What are our options?

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Certainly do your best to sell or rent the property. The problem with trying to buy another home is that you will have to qualify with both mortgage payments when you apply for the new home.

You may also want to speak with your current mortgage servicer and discuss the possibility of a Loan Modification with them.
0 votes Thank Flag Link Fri Feb 25, 2011
Sorry for your situation and i am sure that it is hard to sell a home in Hanksville. When i lived in Salt Lake I loved to visit southern Utah and was always on the look out for property, so if you haven't tried I would market the home in the Salt Lake or Provo area where someone my be looking for a second home or vacation property. I know a few great Realtors in Salt Lake who are avid outdoors people and run around in that crowd. If you would like there info email me at clark.riel@sbcglobal.net. Good luck.
0 votes Thank Flag Link Mon Feb 21, 2011
Hi Worried,

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.
Debbi Love
0 votes Thank Flag Link Thu Feb 17, 2011
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.
0 votes Thank Flag Link Thu Feb 17, 2011
Yes, you should move and accept the new position, if it is good for your family and that is what you want to do. If you can't afford to buy, you should just rent. Prices are still declining in manty places, anyway. Time is on your side. Then you can short sale your first property.

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
Serving all 50 states
0 votes Thank Flag Link Thu Feb 17, 2011
Unless you can qualify, right now, for both homes you won't be able to buy the new house as long as you have the old one. If you can then you could buy the new one, have two mortgages and let the 1st go to foreclosure and ruin your credit.
0 votes Thank Flag Link Thu Feb 17, 2011
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