Short sale my house, is it my only option? HELP!!?
My wife and I bought a townhouse in California 3 years ago after 10 years. We have 4 small children, my wife is bedridden (doctor’s orders). It is a tough situation.
My wife and I are in deep financial trouble. I don’t want to destroy my credit report by going through a foreclosure and I want to do what is right for me and my kids.
I am already 3 months behind and $30,000 in credit card debt.
What are my options?
You might try getting your wife on disability. If this is a temporary situation you might think about staying with family for awhile and renting your house out. Or rent something you can afford for your family and rent the townhouse for the mortgage payment. The biggest problem is that you did not pay for 3 months, you have to make that good.
You can’t short sale if you did not already try to sell it for at least what you owe. Call your mortgage company and ask them for what options they can offer you.
March 1st, 2010 at 3:50 pm
You might try getting your wife on disability. If this is a temporary situation you might think about staying with family for awhile and renting your house out. Or rent something you can afford for your family and rent the townhouse for the mortgage payment. The biggest problem is that you did not pay for 3 months, you have to make that good.
You can’t short sale if you did not already try to sell it for at least what you owe. Call your mortgage company and ask them for what options they can offer you.
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March 1st, 2010 at 4:28 pm
There are some companies that will help you through this. They will talk to all your credit card companies and try to get your payments lowered. They will also try to refinance your home. DO NOT use ones that charge for this service, there are ones that are free!
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March 1st, 2010 at 4:44 pm
Are you going to be able to catch up or is your income probably not going up any time soon?
If you aren’t going to have the money any time soon, a Short Sale is probably your best option. I imagine the Mortgage company hasn’t started the foreclosure process quite yet but certainly the sooner you take care of the problem the better. Also, before trying to do a short sale, speak with the mortgage company and see if there is anything that can be done in the interim until something can be done about your wife’s condition.
Also, with 30,000 in debt. Instead of a short sale, you may want to consider a chapter 7 bankruptcy. it’s going to be pretty difficult for you to get out of the $30.000 in credit card debt, if you don’t file bakruptcy and then you can just surrender your house (this doesn’t help your credit report or score, but it gets you out from the hole and then you can find a place to live within your budget.
If you think you have the money to catch up or will within a month or two, I would recommend filing a chapter 13 (again not great on the credit report, but neither is $30,000 in unsecured debt). You will pay a percentage of the credit cards (and you have to stop using them as of now), and catch up on the mortgage over a span of 3-5 years by paying current payments, and then paying a portion of the arrearages during that time. This will prevent a foreclosure sale (and if the foreclosure process has yet to start it will prevent that as well) and allow you to keep the house. But this requires being able to afford the payments.
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I am a Bankruptcy Attorney and also have worked with foreclosures.
March 1st, 2010 at 5:29 pm
you can talk to your credit card companies or check consumer credit counseling to see if they can lower the interest rate and help you pay your cards off. You can talk to your lender about "restructuring the loan" such as make a "down payment" and then pay the rest within so many days and stuff. I am going through this right now, I feel your pain.
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I am a loan officer, and i have to catch up my mortgage before it goes into foreclosure. Personal experience.
March 1st, 2010 at 5:37 pm
are you working? is your wife on disability? (in other words) do you have income? After 3 months the bank will foreclose on you. You can file Chapter 13…(different than chapter 7).
The bank will take over your property, unless you make arrangements with them. If your situation is that you dont have enough money, and that housing market has changed, then its probably best to foreclose and move possibly to a friend or relative. best wishes.
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March 1st, 2010 at 6:04 pm
http://www.hud.gov/foreclosure/index.cfm
Go to this link and read what it has to say. FHA may be able to help depending on what you owe and your income.
http://www.hud.gov/local/ca/homeownership/foreclosure.cfm
Here is a link for California specifically.
Don’t sit on your laurels worrying…take action and do something now!
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