I currently own a condo of which i can no longer afford. I bought it 2 years ago for 305 k, it is worth about 275 k now. My loan 2 years fix will expire in august, and i believe it will goes up to 9 percent or more. I am paying for 7% interest right now, if the interest goes that high I wouldn't be able to pay for. I am thinking about foreclosure, but i really don't want to destroy my credit worthiness, I just heard about short sales,
any one who knows about these stufff please tell me what is the good way to walk away from this mess. thanks.
List the house with a Realtor that has experience with short sales and HAS a relationship with a real estate attorney that handles nothing but short sales. Let them list it, then they can have the attorney present a short sale request and see if the lender will take it. Lenders foreclosure attorneys work well with other attorneys. They very rarely will work with you or anyone else.
If you really want to stay..call the lender and see if they will work with you on a longer refinance..like 40 or 50 year mortgage? Make sure you tell them you can NOT afford the increase that is coming at you and will have no choice but to allow the house to go into foreclosure. I wouldn't let the decrease in value concern you right now..if you want to stay it will come back in a matter of a few years.
Looks like someone did you un justice when they sold you the property. A short sale is almost like a foreclosure. You are not holding up to your side of the contract. You would have to find someone willing to pay you as much as possible and submit the contract to the lender and see if they would be willing to accept that as payment in full. Your other option would be a "Deed in Lue of Foreclosure". That would be where you would voluntarily give the lender back the property and accept it as payment in full for the mortgage. Be sure if you do that you get something in writing from them showing proof that it won't be recorded as a foreclosure.
Any way it goes it won't be good for you but much better than a foreclosure.
Good luck,
References :
Louisiana Real Estate Broker
List the house with a Realtor that has experience with short sales and HAS a relationship with a real estate attorney that handles nothing but short sales. Let them list it, then they can have the attorney present a short sale request and see if the lender will take it. Lenders foreclosure attorneys work well with other attorneys. They very rarely will work with you or anyone else.
If you really want to stay..call the lender and see if they will work with you on a longer refinance..like 40 or 50 year mortgage? Make sure you tell them you can NOT afford the increase that is coming at you and will have no choice but to allow the house to go into foreclosure. I wouldn't let the decrease in value concern you right now..if you want to stay it will come back in a matter of a few years.
References :