What are my options when abandoning a home?
I live in Michigan and may have a job opportunity elsewhere. The value of my house has fallen since I bought it and continues to fall as houses in my area go into foreclosure on a weekly basis. Assuming that I can’t sell it for what I owe, what are my options?
I have heard that perhaps you can sell it to the lender for the mortage value or maybe work out an agreement to sell it for less and maybe have the balance added to the mortage of the house you want to buy.
Don’t bother answering with equity loans…the house is worth LESS…no equity. And don’t bother talking about the effects of foreclosure on credit…I understand that, but I also declared bankruptcy about 5 years ago and within a year was getting non-secured credit cards at 9-10% interest, no annual fees. My problem with abandoning the home is that it will make it difficult to buy one and I’d prefer not to move into an apartment. And the other problem I have is I really don’t want to hurt my neighbors. Thanks!
Rent Back Fast
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Filed under: flat mortgage
Hang on if you can!
OBAMA by a LANDSLIDE in 08!
rent it out.
YOU CAN RENT IT OUT, RENT TO OWN LEASE PURCHASE, OWNER FINANCE, HAVE SOMEONE TAKE OVER THE PAYMENTS AND IN SIX MONTHS HAVE THEM REFINANCE IT IN THEIR OWN NAME. QUIT CLAIM DEED IT TO THEM.
I agree about renting it. But if you don’t want to be a long distance landlord, talk to your lender about options. They don’t want your house, so if you start the dialogue, you may be able to work out a short sale.
Have you considered renting out the home? You can hire a property management company who will take care of screening renters, maintaining the home, and collecting rent. They simply get a percentage of the rent to cover their costs.
You could try selling it to another Realtor but it would be at a loss and you would have to come up with the difference in cash and without a note attached to be free from it and all the legality. Could be done but since the housing market is at such a low it’s not likely that you can come up with this difference.
Renting it out for a while till the market recovers is another option but that in itself is risky. You might even have to do this at a loss and might end up with a damaged home. Renters don’t usually care for a home as well because they have no value in doing so.
Letting it go into foreclosure is common today. That will hurt your credit and because the Mortgage Companies, Banks and lenders are tightening the rules, you may never be able to buy another home again. You could be closing your door to owning ever again.
I hope that helps you a bit.
Talk to your lending institution and ask them your options. Most financial centers are more than willing to help you work it out rather than lose out in the end.
You can rent your home out - but chances are you won’t get enough rent $$ to cover your current mortage payment (plus insurance, upkeep, taxes, etc).
You can list your home with a realtor and try to sell it. See what kind of offers you can get, if you get one reasonable talk to you lender and see if they’ll accept it. It’s called a short sale.
However, most lenders won’t discuss a “short sale” until your at least 30 days behind on your payment and the home has been listed for sale for 90 days. From what I can tell you’re still okay on your payments. If you do a short sale or abandon your home you’ll have trouble BUYING another home for at least a year or three. But, you can still RENT a home.
I don’t think a mortgage company will let you tack on the balance of previous mortgage to your new mortgage - a house isn’t the same thing as a car.
Also there was an article on line the other day that some businesses are offering to buy your old home so that you can afford to move. Check into that. Either way, get your home on the market.
Good luck.