cant afford house repairs, should I forclose

Asked by Ready To Go, 44035 Mon Jan 16, 2012

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, ,
Mon Jan 16, 2012
Can you afford your housing payments? Qualify for a mortgage? The FHA 203K renovation loan will allow you to include renovations costs into the loan. Speak with a local 203K Specialist to determine if you would qualify. Otherwise, you can also sell with the acceptance of 203K financing; which will probably fetch you a better sales price than a cash offer (which will probably be needed as repairs may well nix the availability of traditional financing). Best of luck to you!
1 vote
Brian widener, Home Owner, Elyria, OH
Wed May 22, 2013
try to do the repairs yourself
0 votes
Ashleigh Vasi, Agent, Strongsville, OH
Mon May 20, 2013
Try refinancing, short sale, there are many options.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Jan 17, 2012
As you have read, you have many options that do not include foreclosure.
Give Paul a call, Agents who have multi-dimensional businesses will have several solutions beyond the typical scope of real estate agents resources.

Every situation is unique and deserves personal evaluation. Do not wait, call.
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0 votes
Paul Drury, Agent, Elyria, OH
Mon Jan 16, 2012
Your questions and concerns are not unique to your area. As a fellow resident of Elyria, I share your concerns. Our City is highly under capitalized right now even after our average home prices fell another 10% in 2011. The long term unemployment and under employment have created a ticking time bomb for our community.

Options available to you.

1) Refinance using a 203k loan as stated earlier. This is something completely dependent upon the lender and their appraisal before and after repairs are made.

2) Find someone who would be willing to finance the repairs for a few years in exchange for equity in your home (equity participation) secured by a lien, but have a balloon payoff at the end of the period.

3) Sell your home to an investor via a Short Sale. Depending upon the home, the lender, the liens of record and other factors, we could prevent it from becoming another empty vacant home.

4) Allowing your home to go into foreclosure hurts far worse than coming to your lender hat-in-hand and executing a Short Sale. Many lenders will forgive the remaining balance and/or send you a 1099 for the forgiven amount. Right now that amount is still forgivable by the IRS under the current tax law. This may change in future years but is still current.

We have investors looking for such homes right now. If you wish to know more, feel free to call or email, no obligation.
0 votes
, ,
Mon Jan 16, 2012
As Deborah "Dee Dee" Garvin said below (thumbs up to you) you may want to look a an FHA 203(k) loan where you refinance and add the cost of your home repairs to the base loan amount.

If this is out the question, I would suggest you check into a "Short Sale" rather that a foreclosure. You will do less damage to your credit, including the long term credit problems you will have if you choose to foreclose. It is important that you contact real estate agent who is experienced in the short sale process.

Good luck to you,
0 votes
Karen Leheney, Agent, brecksville, OH
Mon Jan 16, 2012
Please call me for a personal consultation so we can see what best fits your situation. There possible could be many options for you.. Let me know when I can visit you. Thanks so much. Karen
0 votes
Kimberley Gu…, Agent, Avon, OH
Mon Jan 16, 2012
It's hard for me to give you such advice without knowing the extent of the repairs. I would have to know what the repairs are you are referring to. I would be more than happy to set up an appointment with you to view the home and go over your options before I would suggest foreclosure. Please give me a call to set up an appointment that is convenient 440-346-0915 email. Thank you for your time.
0 votes
Sally Grenier, Agent, Boulder, CO
Mon Jan 16, 2012
We can't answer this for you without knowing all of the details about your home. You should contact a local Realtor who can assess the situation and give you some suggestions on what you can do.
0 votes
Don Tepper, Agent, Burke, VA
Mon Jan 16, 2012
Check with a Realtor first. If you've got equity in the property, you can sell it as-is.

Even if you don't have any equity, you can sell it as a short sale in as-is condition. It'll hurt your credit, but not as much as a foreclosure.

You might also explore a loan modification (not many get approved, though it's worth a try) or a deed in lieu of foreclosure.

Foreclosure itself should be your absolute last step. A good Realtor can advise you on other, better options.

Hope that helps.
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