I have a large mortgage payment of 1900/mth I am currently in a debt settlement program. I cannot afford to

Asked by Annie Watson, Minneapolis, MN Sat May 3, 2008

sell my home due to loss in value and closing costs. I have no equity and want to just get out of it. I am OK with renting although hate the repercussions of foreclosure.
I really don't want this house any more. What do you advise

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7
Todd Norsted, Agent, Maple Grove, MN
Sat May 3, 2008
Annie....

My question, if you don't really wnat it anymore, why did you buy it in the first place?

The respondsible thing to do, since you signed the mortgage and did that in good faith accepting the responsibility to make the payments, is to sell when the market or your finances will allow you to do so and break even.

I am sure that's not what you want to hear, but it's your obligation.

Thanks, Todd Norsted
Web Reference:  http://www.toddnorsted.com
2 votes
Jason Sandqu…, , Minneapolis, MN
Sun May 4, 2008
Renting the house and pocketing the money while letting it go to foreclosure is fraud. Ask the lender to see what they can do. Maybe they can restructure the loan for you or if they can't do that then maybe try a short sale. Don't just let it go to foreclosure, you have obligations that you signed when you bought the house. Good luck to you.
1 vote
Patti Ann Ka…, Agent, Coon Rapids, MN
Tue Oct 27, 2009
First of all, be careful of the answers from people who are not licensed Realtors in Minnesota. The laws in Minnesota are quite different from those in other states and you want to make sure you get good information.

Have you contacted a tax professional or a lawyer? Do you have a hardship? Have you contacted your Lender? How many mortgages do you have? There are many variables that need to be considered.

You should visit the Minnesota Home Ownership Center first. http://www.hocmn.org/en/index.cfm They have lots of information on loan modifications and other programs that might help.

I don't quite understand why you say, "I am OK with renting although hate the repercussions of foreclosure". Foreclosure and Renting are not related activities. If you decide to rent, you need to make sure that the mortgage, insurance, taxes, and any other legal obligations are kept current (your city may additional fees and/or licensing requirements for landlords).

If you decide to go with a short sale, remember that the Lender must agree to it and this does not mean that you are off the hook. Many homeowners end up having to pay a deficiency judgement after a foreclosure or short sale, depending on circumstances.

In the end, remember it is your responsibility and there is no such thing as "just walking away". There are always consequences.
0 votes
Patti Ann Ka…, Agent, Coon Rapids, MN
Tue Oct 27, 2009
First of all, be careful of the answers from people who are not licensed Realtors in Minnesota. The laws in Minnesota are quite different from those in other states and you want to make sure you get good information.

Have you contacted a tax professional or a lawyer? Do you have a hardship? Have you contacted your Lender? How many mortgages do you have? There are many variables that need to be considered.

You should visit the Minnesota Home Ownership Center first. http://www.hocmn.org/en/index.cfm They have lots of information on loan modifications and other programs that might help.

I don't quite understand why you say, "I am OK with renting although hate the repercussions of foreclosure". Foreclosure and Renting are not related activities. If you decide to rent, you need to make sure that the mortgage, insurance, taxes, and any other legal obligations are kept current (your city may additional fees and/or licensing requirements for landlords).

If you decide to go with a short sale, remember that the Lender must agree to it and this does not mean that you are off the hook. Many homeowners end up having to pay a deficiency judgement after a foreclosure or short sale, depending on circumstances.

In the end, remember it is your responsibility and there is no such thing as "just walking away". There are always consequences.
0 votes
Minna Reid, Agent, Trumbull, CT
Thu Oct 15, 2009
Find a local realtor with experience in short sales. They will be able to sell this house for less than you owe and negotiate the difference with your lender.
Web Reference:  http://www.homesbyminna.com
0 votes
Themis Woods…, Home Buyer, Cincinnati, OH
Wed May 28, 2008
That's interesting. I'm looking to buy in the Minneapolis downtown area and can't seem to find a site where people are pre-foreclosure. Looking for 2bdrm+, 2bathroom. Please let me know if you're interested.
0 votes
Will Robles, Both Buyer And Seller, 76248
Sat May 3, 2008
I'll buy it! The way I could do that is for me to negotiate with the lender for a short sale, my specialty. So you're home does NOT have to go into foreclosure. If you're interested, give me a call!

Will Robles

888.605.9190 ext. 1
will@firstcasasolutions.com
0 votes
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