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we are thinking about letting our house go into foreclosure not because we cant pay it but because we arent able to sell it for the pay off and many other reasons. i know this is going to be a huge hit on our credit but at this point we see no other option and in the last few years our credit is shot anyways.
i was wondering how long does it take to get forclosed on and while it is in the process of forclosure after we move out do we still need to keep the lawn up and all that or is it the banks responsibility? can we do a deed in lue of forclosure? and what does that entail?
the house is worth 40,000$ we owe 75,000$ and even though we have a great rate 3.6% we are still paying 900$ a month and its fixed. its exactly a third of our income and after bills and everything we are barely scraping by. we have talked to realtors and they all say we wont get what we need and they wont list it for us. we have tried fsbo and also craigslist but nothing has happened. the house needs alot of work and with that payment we cant afford to fix it either and even then we wont get the pay off. any info would be great. we are ready for moving and for the huge inpact on our credit but we are at a loss as to what we can do. we have even talked to the bank about refinancing but they wont budge because it isnt above a 1/3 of our income. note our payment when we bought the house was 640$ but because of escrow of taxes the payment went up.


Asked by Anonymous at 12:08 PM on Mar. 1, 2011 in Money & Work

This question is closed.
Answers (14)
  • That happened to us too. With our bank it took 3 months of non-payment to go into loss mitigation, and another 3 for forclosure - then another month after the foreclosure notice to the sale, and another 45 days before actual eviction. Many people get more time than that, it varies by bank.
    What you can do is, skip a payment, make a you're only paying every other month. That way, you still have a year or so in your home before they foreclose. If you would rather not stay in your home that long, just don't pay at all. Unless you vacate the home, you do still need to keep up the lawn, insurance, etc, until you move or until the foreclosure sale is final.

    Answer by FluffyMamaBunny at 12:25 PM on Mar. 1, 2011

  • I hope I'm never in that situation. Do you want the house to forclose becaue you just don't want to live there anymore?

    Answer by RentaMom at 12:24 PM on Mar. 1, 2011

  • You are lucky . . . . our mortgage is about 50 percent of our take-home . . . . but that is the norm where I live. . . . there are no houses any cheaper to buy.

    Can you rent it out to cover the mortgage?

    Answer by ImaginationMama at 12:39 PM on Mar. 1, 2011

  • wish i could rent it out but the house needs so much to fix it to even think about renting it. all the electrical needs updateing (tube and knob) needs insulation in the upstairs and lots of sheetrock and new roof and rafters along with the basement foundation is cracked and in need of repair. we bought the home knowing it was over a 100 years old and knowing that it needed work and were willing to do it and could at the monthly payment when we bought it but now we cant afford to fix it. we know about construction and could od the work ourselves but we are just scraping by and cant afford to get the materials to fix it.

    Comment by Anonymous (original poster) at 12:52 PM on Mar. 1, 2011

  • How much would you be spending to rent something else?

    Answer by ImaginationMama at 1:48 PM on Mar. 1, 2011

  • well from what i am finding the rent for a 2 or 3 bedroom house is about 500$. we do have a cabin and have been thinking about just moving out to that full time and putting the 900$ into it to make it a year round house. (needs insulation and electrical) but if we move into it in the spring that would give us plenty of time to do all the sealing up and fixing it needs before next winter.
    so thats what we are thinking right now rent a place for 500 and stay there for a couple years and put the other 400 into the cabin to fix it up or just take the plundge and move out to the cabin permantly and put the 900 into the cabin and have it ready for living in the winter and then work on finishing it through out next winter.
    we bought the cabin last summer and it was a steal that we just couldnt pass it was 315 a month with an acre of land and a 3 bed house in a wonderful small town surronded by national forest.

    Comment by Anonymous (original poster) at 2:57 PM on Mar. 1, 2011

  • we have been thinking about this for over a year now and have heave and hawed over it weighting all the pros and cons. that is why we also bought the cabin this last summer was as a back up plan. unfortunatly ew got the house late in the summer and didnt have enough time to make it livable in the winter but if we get working on it as soon as spring comes and the snow is gone it will give us the time needed to fix it up the right way. it may not have sheetrock or be finished inside but it would be warm, clean, and livable as we work on getting it finished over a winter.

    Comment by Anonymous (original poster) at 3:02 PM on Mar. 1, 2011

  • It sounds like you have some good options. Have you also tried to call the bank and find out is you could get a short sale pre-approved? That would be better for your credit.

    Answer by ImaginationMama at 4:27 PM on Mar. 1, 2011

  • everytime we call the bank we get a differ answer each time. and we are told different things by realtors as well. so we have no clue what answers are true and which arent. we were told that a short sale wouldnt give us the full pay off but we also need to have a buyer already set up which we dont and also that it needs to be listed for a certain amount of time which no one will list it.

    Comment by Anonymous (original poster) at 4:31 PM on Mar. 1, 2011

  • Oh . . . how frustrating!

    Answer by ImaginationMama at 4:42 PM on Mar. 1, 2011