My husband wants to foreclose our home. ?

Question

We have paid 40000 off from the mortgage and 10000 for renovation. The mortgage alone is 338,000. And right now with the market being so bad he wants to foreclose. To him he would rather rent a 2 bedroom (since we are in a one), for 2500 a month. Our mortgage is 3300.He wants out since he doesnt see the real estate market increasing just lowering.Is that a truly good idea?

Answer 1

It will bounce back, you are still building equity.

Answer 2

INSTEAD OF FORECLOSURE;YOU CAN SIGN THE HOUSE BACK OVER TO THE MORTGAGE COMPANY.THAT WAY NO STRIKES AGAINST YOU GUYS. HOPE IT WORKS OUT

Answer 3

You failed to mention what the home is worth now.  Remember if you default the lender will foreclose not you.  If the home does not bring a high enough price to cover the banks investment and costs you will be liable for the balance.  Further your credit will be in the toilet.  Beware of offers from parasites looking for people in your position.  If you are intent on giving up your home contact the lender and sign the appropriate documents sparing the lender further legal fees. I forgot the name of that type of forclosure.   As I stated, you could be the one responsible for the legal fees.  If you are upside down the lender does not want this property back.  See if you can negotiate for lower interest or other concessions in your favor.  Changing economic conditions have made fools of some bright and hard working people.  Be brave, you will get through this.  

Answer 4

If you get a foreclosure for your present home.  Then it will be hard for you to borrow money in the future for another home.

But your husband is probably right that it would be cheaper for you to rent than to pay for your present mortgage.  House prices are going down.  And it's quite possible that your house is now worth less than your remaining mortgage on it.  

With the economy not doing so well and with unemployment rising.  Perhaps it is a good idea to cut back on your expenses and not pay for your housing any more than you have to.

Answer 5

Foreclose, you mean you want to hand in your keys to the bank?  Will this not ruin your credit history? And ruin chances of any future borrowing????  

Sorry to hear about your situation.. maybe seeking legal advise would be better before a big drastic measure...

Any other options available to you? Like re-amortizing your loan? (this would reduce your mortgage payments)  It sound like you are paying accelerated?

Good luck...

Answer 6

He's an idiot. Unless you can't afford the payments (or over-paid at the peak of the bubble) then you will make out in the long run. The only people who need really worry are those whose circumstances have changed somehow. Your payments are static, your income is static, what's his beef? He's paying too much attention to hysterical yellow-journalism headlines.

Answer 7

why dont u jus sell it. with foreclosure, you really dont get anything out of it.

Answer 8

It is a terrible idea.

You cannot "sign the house back over to the bank" - it will still show as a foreclosure on your credit report.

You don't mention what the house is worth now vs. what you owe.  If you owe less than it is worth, you need to sell.  You may be eligible for a short sale if you are close on worth and what you owe.

The market being bad is a temporary thing, it will recover.  Trashing your credit with a foreclosure is a 7 - 10 year decision, you will pay more for everything based on credit score, such as credit cards, car loans, insurance, rentals, etc., etc..

Don't foreclose until you have explored your options.

Answer 9

Half of the homeowners in America are wondering the same thing.  What if we wait another 3 years and things are even worse.  We should have packed up and gone.

The boom that hit real estate in 2004 came with no warning. Anyone who did what your husband is planning.... they lost $100,000 because they were renting instead of owning.  It could happen again.  Not one expert predicted the 2004 boom.  Not one expert predicted the 2006 crash.

THis could be the smartest idea in the world or the dumbest idea in the world.  

THe final question is your credit.  Your credit score would go down to 550.  Average in America is 720.  You will pay 22% for every car that you finance for the next 10 years.  I don't know about you but i'm sticking it out and keeping my home. /

Answer 10

renting=burning money.  

Answer 11

It's a downright STUPID idea.  The fact that the value (currently) of the property is less than what you owe is not related to whether or not you should continue ownership.  The real estate market WILL recover.  It's just a matter of time.

If your husband thinks he bought his house as an investment rather than as a place to live, he made a silly move.

Answer 12

He is a moron.  Unless you are upsidedown in your equity in the home, you'd be better off continuing to make the mortgage payment and put the home up on the market for sale.  With renting, you'd have NO equity...you might as well throw your money away.

Answer 13

You should sell it. Not foreclose. You should sell it. The market will eventually go back up. It cant go down forever.