Alternatives To Foreclosure Of My Home
This is new to me so bear with me. I own a home with a 1st ($180,000), 2nd ($32,000) & 3rd Mortage ($30,000). The home is currently for sale because we're moving to Florida. We've had comps from 3 realtors and they run from high $240s to high $250s. We've been asking $258,000 (for sale by owner Apr-July) & with a realtor since then) with no real offers.
Problem 1: With $242,000 in mortgages + RE taxes, realtor fees (3.125%) and closing costs, we can't afford to sell for much less than $255,000 - which apparently is too much right now. It is a great neighborhood with steady housing appreciation.
Problem 2: No cash and tapped out credit wise. Have gotten one month behind on first motgage and have a repayment agreement with motgage co. With this and my other debts, I'm seriously thinking of walking away from the house and losing it to foreclosure. But I keep thinking there has to be a way of selling this house (which will easily sell in the high $240s) without going through foreclosure.
One alternative I'm considering is a lease option with an investor who'll pay me $1900 down, $1900 a month for two years, buy the house then for $249,000, and give me 30% of the profit above that amount. He'll in turn lease-option it to a tenat buyer.
The reason (finally!) I'm writing to this forum is to see what options there are to foreclosure and lease-option. Ideally, I'd like to be rid of the house and not have a severely damaged credit rating. Any thoughts?
whereis the home located
Illinois
What are the offers you have had? If you sell for $250K, you should be able to break even. If you get an offer for less, ask the lien holders to discount their notes and approve a short sale, and required the seller to pay all settlement charges.
Your question might be better addressed in the short sale forum.
By participating in a lease option, you'll not rid yourself of the house... you'll still be joined at the hip to the mortgages...
It sounds like you may be a candidate for a short sale, or at least be able to have the most junior lienholder agree to release it's security interest... but the time to structure a potential short sale is NOW. You'll need the cooperation of the real estate broker(s), and your mortgagee(s). Contact the most junior lienholder and ask that they send to you a workout/short sale application. When you get that, let us know. The listing agreement will have to be ammended to reflect what you propose to do.
Thanks DaveT and The ShortSalesPro for your responses. I need to spend some time in the short sales forum
I thought you could NOT short sale your own property??
Lyn wrote, "I thought you could NOT short sell your own property..."
Could you be more clear about what you mean? The only one who can sell a property is the owner of the property.
It's the owner who makes application for short sale consideration, and it's the owner who qualifies and is granted short sale relief.
The property may be sold to an investor, or to a friend or family member...
What am I missing about your statement?