that way you have no headaches from either the ex nor the property.. start new life.
email me if you have any other questions.
If you rent out the property, there are a few things to consider. You will still have ties to your ex-fiance, and you will need to work together to hold this property. Additionally, if there is a change in financial circumstances for either of you, will you still be able to make the payment? And, finally, consider that it may be several years before you are able to increase the rent to the amount of the monthly payment and/or sell the home without taking a loss.
If either of you are living there, you might be able to obtain a loan modification. However, consider how that will work for the person who is no longer living there but who is still on the loan.
If you decide that renting or loan modification does not work, you then need to consider whether a short sale or foreclosure is better. A short sale allows you to negotiate with the bank, may result in less damage to your credit, less loss to the bank (as they do not have the legal fees and holding costs of foreclosure), and the ability to buy a new property sooner than a foreclosure.
A short sale requires a few things to qualify. One is a hardship, and the separation should qualify you for that.
If you would like to speak further about the short sale option, please contact me at 714-319-9751.
The first answer, below, was pretty accurate. Quite a bit hinges on how you presently have your ownership. You should probably seek the opinion of an attorney - together - to help sort out both your plans, and also the impact your choices will have upon your credit worthiness, in the foreseeable future.
It sounds as though you've both "moved on" - perhaps both already having bought another property of your own. If that's the case - that you've both settled into a place for the next few years - that will help your situation, in terms of eventual future moves or purchases.
In addition, rental rates have risen in Orange County, recently, so perhaps you'd be closer to a break even cash flow.
If you'd like a few more answers, feel free to check out my website below. There's no obligation.
Good luck in sorting out your options.
You can probably do a short sale....since a change of family circumstances normally would qualify. But this is a big step and you both need to be on board with that decision....it's a hit on your credit for a while. Make sure this makes sense given the rest of your finacial situation.
If you can rent with only $350 left over...between the two of you, splitting that might be a good idea. If one of you is in the home, you are not very far upside down, you might be able to get a loan modification and make it affordable enough for one of you to keep it. You should be able to call your lender with income information and get a feel for what a loan modification might be able to do for you...I'd get this information first.
I can't make that decision for you...but if you do decide to pursue a short sale, then we can talk about what that entails. It will take about 3 months to get the approval after we get an offer. Just to give you a timeline if you are living in the home.
If you have any specific questions that you might like to ask me privately....feel free to shoot me an email/call and Id be happy to talk with you in more depth.
If both of you are on the loan and title, this will have to be a joint decision.
You sound like you may qualify for a hardship to enable you to do a short sale.
1. Separation (ex-fiances)
2. That may also mean neither one is financially able to buy out the other, or make the monthly payment
3. Lower market value,
Short sale has a less adverse effect on your credit (in 2 years time or less, you may even be able to buy another property; whereas it could take you 7 years or longer to recover from a foreclosure)
If you can't cover your monthly payment if you rent it out-- then what is the agreement between you and your fiance regarding the financial obligation to pay the mortagage? Sounds like a big headache to get both parties to agree.
One can refinance and keep the condo, transfer title only in that one person's name and release the other from the previous loan obligations. But can either one of you qualify to take on the loan as an individual?