Due to a car accident several months ago my husband and I were in (not our fault) we have been unable to pay

Asked by Ann S., 92040 Tue Mar 4, 2008

all of our bills on time. We have negotiated lower payments with the credit card companies. Will the banks who carry our 1st and 2nd so this or should we try to sell our home? I believe we owe too much on the house and we would have a hard time finding a buyer for our house here in Lakeside.

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8
Peggy Frankl…, , 92130
Tue Mar 4, 2008
Hi Ann,

Outsourcing home retention departments by lenders seems to be the latest thing. If you ask India to patch you through to someone in the U.S., most times they will. Once you get a hold of your lender ask them if they have a home loan modification program and take advantage of it if you can. Most lenders do require that you are currant with your mortgage. Mailing them, may take some time, a modification is faster and easier.
1 vote
Rebecca Cham…, , Palos Verdes Estates, CA
Tue Mar 4, 2008
Great advice Ginger! It's so sad to even have to think about things like that...but indeed Ann...you should remove your last name.
1 vote
Kari Shea, Agent, San Diego, CA
Thu Mar 20, 2008
Hi Ann,

I know money is tight for you right now, howver, it i worth consulting a Real Estate attorney to discuss your options. Given none of us are a lender or an attorney, our Real Estate expertise could create liability for you as the seller. Your situation is called a short sale, where you owe more than the current market of your home. You can sell in this instance if your lender agrees to do so. The very first disclosure necessary from any Real Estate agent for a short sale states that you have been advised to seek legal and financial councel.

Many lenders are also doing what is called a short refi. This is where the lender agrees to lower your loan amount and renegotiate your terms. The purpse for the lender is to avoid a short sale or forecosure.

Know your options before you take action.

We hope this helps,

Mark & Kari
0 votes
Loren Castle…, , San Diego, CA
Thu Mar 6, 2008
Hi Ann, I am not a lender but an agent that works in east county and with short sales. Some of the factors lenders will take into account when deciding whether or not to approve a short is are 1- Does it make sense monetarily - is it cheaper to repossess, repair and sell the home through an agent. 2 - Responsibility - are there cosigners who can be held accountable for any remaining balance owed 3- has the area depreciated in value - is the property in bad condition, are new homes selling over existing ones 4- how deserving is the seller - is their hardship a result of uncontrollable circumstances (yours for sure is) . You should draft a hardship letter and submit it to the Loss Mitigation Department of your bank. If you have any questions you would like me to help answer for you please email me directly, lorencastleman@remax.net, and I wish you well.
0 votes
Ginger R., Home Seller, Massachusetts
Wed Mar 5, 2008
Hi Ann - Peggy gave you good advice about requesting to be connected to US. It really is impt that you talk with them quickly and try to work something out. You may not be able to "walk away". Many mortgages hold you personally liable and they can come after you for any shortfall btwn what they receive for the home at auction and what you owe. A foreclosure would remain on your credit record for at least seven years and make it v difficult to gat another loan. So get in touch w the lenders now and start that process.

I think you should also talk to a couple of real estate agents and explain your situation. Try to find an agent who has some experience in "short sales" where a home is sold for less than the mortgage due.
I'm sorry that I can't offer more help Ann, but I think you need to talk with the lenders and a local real estate agent to see what your options are. You will get a better result by working on this, than walking away. I hope that you are able to get some compensation for the accident and clear things up.
0 votes
Ann S., Both Buyer And Seller, 92040
Tue Mar 4, 2008
Thank you. I just filled out the box. I changed it to Ann S. I called one of the lenders and was transferred to someone in India who barely spoke English. I am writing the bank today. We have an awesome house that was given a $730,000 appraisal and is unique, great view, huge lot but in an area where most of the houses sell a couple iof hundred thousand dollars below. We owe $710,000. We are going to try to work something out with the bank.. We are both self employeed. A kid 18 t boned our car and RAN! We got the license number...an an attorney. We have never walked away from a house before and didn't want this to be the first time. What does happen if worse comes to worse and a person walks away?
0 votes
Ginger R., Home Seller, Massachusetts
Tue Mar 4, 2008
Hi Ann - I'm so sorry about the accident. I am not a lender but i want to urge you to delete this post and repost the question without your last name. Just use something like "Ann S." Otherwise, you have included enough info for an unscrupulous scam artist to track you down. They offer to make all the payments - you just sign the deed over to them or some such thing. In any case, unless this is not your real name, I do suggest you delete and repost.
I would start by calling the lenders and explaining the situation. There will be others here who can offer more advice. But do watch out for any direct solicitations because there are scammers out there.
0 votes
Rebecca Cham…, , Palos Verdes Estates, CA
Tue Mar 4, 2008
Hi Ann. Try contacting the banks first and see if they will work with you. I would also suggest contacting your Realtor to find out today's value of your home so you can make decisions with as much information as possible.
0 votes
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