Anthony P asked:
We have a home in NJ, we have a mortgage and a home equity loan, we have never missed a payment. We need to move and can’t sell our house while using an agent without losing money with thier commision. Is there any way to simply give the house to the bank to settle the debt and walk away without foreclosing?
FERNANDO
We have a home in NJ, we have a mortgage and a home equity loan, we have never missed a payment. We need to move and can’t sell our house while using an agent without losing money with thier commision. Is there any way to simply give the house to the bank to settle the debt and walk away without foreclosing?
FERNANDO
HERBERT
why not sell the house yourselves – just list it for sale for the exact price that you owe or speak to a real estate broker and make sure that if they do find a buyer for your house it will be the buyers responsibility to pay commission.
good luck
HECTOR
You can discuss a ‘deed in lieu’ with your lender, which is simply an agreement between you and the lender for the lender to take title to the house. Whether or not you are forgiven for any mortgage deficiency is another matter of agreement.
In any event, if you allow a foreclosure, short sale, or deed in lieu, it WILL appear on your credit report as some sort of failure to honor your financial obligations, and will haunt you for several years down the road.
ERNIE
Yes. It’s called a deed in lieu. Talk to your banking representative and they can start the paperwork. It’s similar to doing a voluntary reposession of a car. You will have to pay the difference of what the bak sells the house for and what was lef ton the mortgage note and you will take a credit hit – but do what you must to stay afloat in this difficult economy.
TROY
The bank will likely sell the house for less than you could while you are living there. You will owe the shortfall to the bank and they will try and collect from you.
I would try and sell it yourself- but you will need to price it lower than you would if you used an agent.
There is no easy way out of this situation.
How bad would it be simply to remain in your house three more years? There is a good chance that things will be much better by then. If prices were to go up you could even have an equity in your home again.