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2 Bumps

House Abandonment...

I was just wondering if you ladies knew what would happen if we just up and abandoned our house. The lender will not work with us on our payments. My husbands hours have been cut at work, and we are to the point we can barely eat because we justy can't afford this house anymore. I just want to cry. I don't know what to do. We got a letter that our house insurance was going up like doubling. That's crazy. They said it was because so many people filed claims last year that they had to. It shouldnt be put on us though. Anyways, any advice or information would be great. I tried to find something online but couldnt find any info. Also i live in Georgia. Thanks...

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Anonymous

Asked by Anonymous at 6:41 PM on Sep. 18, 2010 in Home & Garden

Answers (4)
  • You would have to file bankruptcy. My parents did this. It took 7 years for their credit to return to positive. They recently bought another house. It actually really helped them. You should get financial advise before you do something so drastic.
    Anonymous

    Answer by Anonymous at 6:43 PM on Sep. 18, 2010

  • Filing bankruptcy could lead to either one of the 2... loosing the house or reaffirming the payment, but the payment could and may
    stay the save still leaving you in the same boat..
    Abandoning the house will eventually put the house in foreclosure and in turn you loose it and it is on your credit for sometime...
    Now you could stop making payments all together and again this will lead to foreclosure, but give you time to save some
    money to move and yes most likely abandoning the house...
    Don't beat yourself up over it... a lot of ppl are going thru the same thing you are and yes many lenders are being jerks...
    I don't know how many ppl I know in this small town that has had to abandon their home bc of the same issues you are
    going thru and the horror stories they tell about their lenders/banks not willing to work with them...

    Good Luck
    gmasboy

    Answer by gmasboy at 6:51 PM on Sep. 18, 2010

  • Let your lender know you can't pay anymore and tell them you want to do a short sale. They will want to see bank statements and paychecks with a letter explaining your situation. They may or may not accept. If not stop paying and let them give you notice to move out. Banks are so busy right now that you may end up staying there for up to two years. I know many, many families who have done it. A Short Sale will stay on your credit for 4 years versus foreclosure 7 years. We did a short sale because our lender wouldn't budge either. You end up hiring a Realtor to sell it like a regular sell but their will be negotiating going for the sale price and you don't make payments because you can't until it sells. We lived in our home for over a year with no payments. We have already purchased another home too.
    Congenial

    Answer by Congenial at 6:56 PM on Sep. 18, 2010

  • I agree about the bankruptcy. It might be your best option if you are considering abandoning your house. We never owned a house and declared bankruptcy last year. We kept our car but got rid of the rest of our debt. It was the best thing we ever did. We no longer have that hanging over us and can actually work to make a future for ourselves and our kids. It's been rough, though, when we wanted to move because we have no credit. While on the road we ran out of money and had to have family wire us some more because we have no credit cards...only the cash in our checking and saving accounts.
    If you abandon your house they will foreclose and it will go on your credit report. Your credit will be ruined either way but bankruptcy will go away after 7 years.
    justanotherjen

    Answer by justanotherjen at 2:07 PM on Sep. 19, 2010

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