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In Reply to: Should they forclose? posted by J. Rollins on September 06, 2001 at 23:52:28:
: My daughters' family bought property in New Braunfels, Texas last year and a manufactured home to put on it. Her husband has since transferred jobs and they had to move to South Carolina. Problem is, they can't sell for what they owe and can't afford the $800.00 a month payments. The realtor has found renters, but they can only pay $600.00 a month. The realtor wants $600.00 up front plus 12% of the monthly rent thereafter! She tried talking to the finance company, to no avail. What would be the repercussions of just walking away? The "stress" is tearing her family apart and I can't help believe that if they just walked away, they would at least be able to see an end to this mess in sight. When the house is sold in foreclosure, is the balance owed due in full, or do they have to make payment arrangements? Any advice would be greatly appreciated. Thanks
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Believe it when I tell you that the mess will just get started if they opt for foreclosure. The calamitous effect it will have on their credit for the next several years will be dogged and severe and their “stress level” will go up several more notches at the same time.
I would take what I could now (rent it out for the $600/mo.) and try to work out a short sale with their lender while their real estate agent tried to find a “short sale buyer”.
A Texas foreclosure takes two months (see link below) and the lender is allowed to go after a deficiency judgment if the property is finally disposed of for less than what’s owed.
Hope this helps.