Foreclosures Discussion Archive 7

So humored!

Posted by Reinstatement Services, Inc. on June 27, 2003 at 12:49:34:



In Reply to: Re: Lessons in Life... posted by Jay Goerke on June 27, 2003 at 12:16:04:



Do you see what good can come by talking things out? So from now on when I see a Jay G posting I will know that that isn't sarcasm...that's just Jay being Jay. I accept your clarification and happily move forward.

Options might include your current pursuit: bankruptcy, but understand that the foreclosure process will still be involved so that the mortgagee can legally divest you of your claim to the property. Neither look great on a credit profile particularly if a new employer is pulling it as part of a background check.

An offer of a deed-in-lieu might be another alternative which must be approved by your lender. To obtain approval, your lender will have to determine that accepting a deed-in-lieu will provide them with more of a gain than a loss. Consequently, they will be looking to qualify your property void of leins and other encumberances. They will also be looking at your financial situation to determine if you really can't afford the home.

A short sale will also be an option worth exploration. A lender sponsored short sale will allow you to settle with the lender for some specified $value which is less than the amount owed on the debt to be accepted as payment in full with no further money owing. You will have to secure a buyer. Other attachments/existing mortgages/leins on the property might make it difficult [but not insurmountable] for you to secure short sale approval. In my opinon a lender approval of a short sale will yield the best outcome if you are looking to minimize periphrial damage related to a foreclosure action and bankruptcy [such as severly impaired credit]. although you wouldn't have to worry about a deficiency judgment as they are not allowed in your region.

To obtain short sale approval, most lenders require that the property be listed for sale for a period of time. They will want to know that active marketing of the property has indeed taken place prior to agreeing to accept less than what is owed.

Often, in instances where there are seconds and thirds, homeowners find it difficult to get all parties to agree in time enough to allow the short sale process to complete before a foreclosure sale takes place.

Although it might be difficult, my recommendation would be for you to petition your lender for short sale approval or to embrace the notion of renting the property at 75% until such time as a buyer can be secured. In the long run using either of these will create for you the least amount of damage as you seek to establish your new life.



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