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Mortgage: Allow forclosure or liquidate?

It's time to bail. We will never catch up at this point The modification hasn't gone through yet it's been 14 months.

 
Anonymous

Asked by Anonymous at 2:54 PM on Sep. 12, 2010 in Money & Work

This question is closed.
Answers (6)
  • I short sale without recourse means that you can sell the house for what it will bring and the bank promises (in writing) not to go after you for the difference. It is just slightly better than a foreclosure in the sense that it doesn't do quite the damage that a foreclosure would, but it's still bad.

    But if you've been late on your mortgage payment your credit is probably already bad anyway.

    Banks are willing to forgive the difference in a short sale since legally they have to go through a ton of paper work and give you so many days to catch up, or buy the house back when it's a foreclosure. So sometimes it's in their best interest to forgive the difference since it saves them time and money.
    Erica_Smerica

    Answer by Erica_Smerica at 6:05 PM on Sep. 12, 2010

  • I've heard those modifications can be a nightmare. Have you sat down with your bank and tried to work together? Can you put the house up for sale and tell the realtor to price it "to sell"? Could use more info............
    elizabr

    Answer by elizabr at 3:02 PM on Sep. 12, 2010

  • It's Bank of America so they are about as helpful as a pile of old socks. Liquidating basically entails a short sale. I don't know which one looks worse on your credit.
    Anonymous

    Comment by Anonymous (original poster) at 3:04 PM on Sep. 12, 2010

  • Yes, agree about Bank of America.

    I just Googled "short sale affecting credit" and some of the articles say the late payments, or no payments, affect your credit the most. Google it and see what other articles say. I wish you all the best.
    elizabr

    Answer by elizabr at 3:20 PM on Sep. 12, 2010

  • It depends on what you can afford. We were in the same situation and the mortgage company refused to work with us (we had Countrywide). In the end we had to file bankruptcy because after the foreclosure and auction (at which Countrywide purchased the house form themselves) we still owed them $45,000. There was no way we were paying that much more and not having a house to show for it. We tried working with them for months to get caught up and in the end we found out that they had held 4 checks claiming that they were partial payment since the first one was late and that made the full balance due. It was a nightmare. We rented for three years and scrimped and saved and this year we bought a house out right (no mortgage) through a foreclosure listing. It's sad that it had to happen to someone else too, but we paid less than half of market value for this house.

    scout_mom

    Answer by scout_mom at 3:23 PM on Sep. 12, 2010

  • Sounds like you need some help, how about forbearence?


    Take a listen to this call, whos on your side anyway to give Bank Of America a little nudge?


    https://www.prepaidlegal.com/html/blasts/110309_foreclosure.html

    IraqiVetWife

    Answer by IraqiVetWife at 3:29 PM on Sep. 12, 2010

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