Home Buying in 44314>Question Details

Chris2, Home Buyer in 44314

I currently own a home that is worth about half of what i owe on it. Also, my family has outgrown it. Should I short sell, foreclose, bankrupt?

Asked by Chris2, 44314 Mon Apr 4, 2011

I have found a house that would be perfect, but i cant get it because of the home i am currently living in.

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Stephanie Leon’s answer
I would first find out how much your home is really valued at instead of guessing. Then you may be surprised it could be worth more than you thought. In addition, rent prices have been going up. You may be able to rent your home and break even allowing you to buy the new home... If you Short sale bankrupt or are foreclosed on you will have to wait at minimum 2 years before you can buy and if you did that then you should stay in your home for 2 years and then sell for a profit. Short Sale, Foreclosure and bankruptcy is for those who can no longer afford the home they live in... It is not meant for a way out... You may even be able to re-fi the home for a lower monthly payment that would allow you to afford a new home. I would suggest you speak with a professional in your area to provide you with a market report of your home. This is free... All you need to do is ask for one.

If you want, I can refer you to the right agent in your area.

Below is a link to find out what your home is really worth.
1 vote Thank Flag Link Mon Apr 4, 2011
My home is worth 40k and I owe about 74k. It is 936 sq. ft., 2 bedroom. I have a wife and 2 young sons. I can make the payment and have been making the payment on time everytime. We have just outgrown it. I have already refinanced 2 times. When I originally bought the home 6 years ago I was apart of the whole predatory lending fiasco. There is no way I could rent either.
0 votes Thank Flag Link Tue Apr 5, 2011
Without knowing more about your situation, it would be hard to advise you. There are many factors that you need to think about and many possible outcomes for anything you attempt to do.
The first thing to do is to consult an attorney who is experienced in bankruptcy and real estate. If you need some suggestions let me know, or if you just want to talk about it I would be glad to give you the benefit of my experience.

It is critical that you get some professional advice. Do not wander off into this jungle all by yourself.
0 votes Thank Flag Link Tue Apr 5, 2011
If you have fallen behind on your morgtage payments and can make the payments you should look for alternatives. Ask your bank for a loan modification, ask your bank what their terms are for a short sale, seek an attorney about bankruptcy. If your able to make payments, keep your house.
0 votes Thank Flag Link Tue Apr 5, 2011
Short sale is almost always your best option. I have even heard that certain lenders, Wells Fargo comes to mind, are lending to people who have just finished a short sale under certain narrow circumstances. Talk to a good local realtor experienced in distressed property sales, i.e., short sales, find a good attorney and talk to a local lender as well. They will be best able to guide you through these troubled waters and get you to your goal as quickly and painlessly as possible.
0 votes Thank Flag Link Tue Apr 5, 2011
Hello Chris, this is the same boat many homeowners are in today. I'm not an attorney, but filing BK will not reduce the principal amount of your mortgage. You will still owe the same amount on your first mortgage. In most cases it's better to short sale than to foreclose. There are loan programs that will allow you to buy after a short sale in two to three years. This seems like a long time, but time flies! I'm sure home values will be close to where they're at today. You have to do what is right for you and your family. Do some research and then make a decision.

Good luck!
Web Reference: http://www.ajsocal.com/
0 votes Thank Flag Link Mon Apr 4, 2011
Doing a short sale, foreclosure or bankruptcy will prevent you from buying that dream home for at least two plus years and wreak havoc on your credit rating. Plus Ohio allows deficiency judgments, so if you did foreclose or short sale, there's a possibility your lender could sue you for their losses and attach a lien on your brand new home.

Before doing anything, please consult an attorney.
0 votes Thank Flag Link Mon Apr 4, 2011
Speak with an attorney about these options as a mortgage is a legally binding contract with serious consequences for broken terms of agreement.
0 votes Thank Flag Link Mon Apr 4, 2011
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