Facing Foreclosure, Need To Sell Or Advice?
I lost my job in Colorado. I have a 1st MTG which is 185,000 and a 2nd for 39,000. The home is worth $200,000. I am over 30 days on my 2nd and am just late since Jan 1on the 1st. I do not plan on paying any more on my MTG, or staying here in Colorado. What options do I have? I would like to do something other than let foreclosure happen. Thanks!!!
You guys are great, thanks for the info!
Also, just to put it in perspective, about half of my neighborhood is up for sale. So selling privately is not something that would probably happen anytime soon. I se much online about "Stop Foreclosure". Does anyone know how these programs work, or if they would help me with this negative equity?
Since you owe more then your house is worth the only possible solution for your situation, if you would like to avoid foreclosure, is to do a short sale. Basically someone (an investor) will need to purchase your property subject to short sale, which means they will negotiate with your lender to get them to lower your mortgage, therefore creating equity. This will get you out for foreclosure, but you would not be able receive any money. I would recommend calling some of those advertisements you mentioned and talking to a few investors regarding your situation. Also, take a look at a Short Sale forum, to get better understanding of what that is.
CALL YOUR LENDERs IMMEDIATELY...tell them what's happened and that you "can't" (not wont) continue to make your payments. They don't want to foreclose and may have some solutions to help you out in the short run. Be persistant...you're not late enough on your mortgage to be automatically routed to the department that handles these situations..ask for someone who handles loans in default. Stay in touch with them regardless.
It'll be easy today to walk away but you'll pay a huge price for a very long time if you damage your credit rating with a foreclosure...
Sorry you're going through this but hang in there....and watch your back. There's alot of crooks out there lusting for someone in distress to take advantage of . Before getting involved in anything "creative", check references & do background checks. You may get offers to sell your house subject to the mortgage staying in place and/or lease/option it...these are both strategies which could work for you but RESEARCH who you're dealing with....you should only deal with an individual or company with the financial resources to make your payments on time and has a history of dealing eithically with sellers.
Good Luck!
If cashflow is your issue turn on the lightbulb for ideas, try not to continue missing mortgage payments! Preserve your credit and try a few of the following suggestions:
* Lease your basement or a bedroom or two for a few hundred dollars a month
* Work a second job (i.e. Pizza delivery, grocery store shelf stocking)
* Reduce monthly payments with your utilities (negotiate a lower monthly payment)
Lastly,
* Perform errands or deliveries for a fee
Stay away from "creative loans!" You are upside down with a volume of neighborhood influences.
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Looks like you will as suggested have to do a short sale - if you get in touch with me I will send you my short sale guide that will help in this process - I only ask that you help another when it comes time.
This is for the poster only folks!
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rreedy
I am an investor located in Colorado and I could assist you with your efforts to short sale your property. I have completed several successful short sales recently with different banks.
If you woudl like to discuss what options are available please contact me privately. I have also sent you a private message with my direct contact information.
Hang in there - things can be done to get you out of your situation.
-Stefanie