Market Conditions in Temple>Question Details

Sunglitz1, Home Buyer in Temple, GA

what do you do when your home is worth $50k and you owe $115k?

Asked by Sunglitz1, Temple, GA Mon Nov 12, 2012

I bought a home in Temple, GA 5 yrs ago just before the market crashed and am now stuck with it and owe 65k more than it is worth. Do I just let the bank have it?

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Answers

5
It is up to you, Sunglitz1, as there are multiple options available for all of us that are or could be in your situation. One thing of which I am absolutely certain, however, is until Americans quit walking away from their personal debt obligations, things are not likely to get much better. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
1 vote Thank Flag Link Tue Nov 13, 2012
Assuming you can still afford to do so, you continue making the mortgage payments on time each and every month. After all, you do have to live somewhere.

Michael has it 100% correct with his response. Mortgage companies are now coming after home owners who can afford to make their payments, yet walk away from a home. Fannie Mae, Freddie Mac, and HUD are al taking a firm stance against this practice. Many are pursing and obtaining deficiency judgments against those home owners for the losses incurred with a foreclosure. This means you also now have a judgment against you to pay back that difference on a home you now longer live in.

Had you home increased in value, there probably would have been no question asked. A value is just a snapshot in time. Values are slowly beginning to rise, but until the foreclosures and short sales get through the system, it will just take some time.

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

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Tue Nov 13, 2012
The same thing you would do if it were were 300,000 enjoy your home!
0 votes Thank Flag Link Tue Nov 13, 2012
Checking with your lending institution is your first stop. There are other options but most are not good news types.
0 votes Thank Flag Link Tue Nov 13, 2012
Sunglitz,
Where will you live then? If the value had tripled, would the bank require you to pay them more? You have some options; if you want to stay inquire with your lender about a loan modification. While this is far from guaranteed to work, it's could be worth the effort. Next, if you need to move anyway you need to learn about the pros and cons of a short sale.
It will impact your credit, but typically not as bad as a foreclosure. It will take 3-9 months or possibly longer to complete and depending on your lender and negotiator you may still have some balance owing.
0 votes Thank Flag Link Mon Nov 12, 2012
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