Please help questions on foreclosure and other options.?

Question

We are in a common situation that seems to be happening to everyone. We were given a home loan for far too much money and now find ourselves stuck. We don't know which way to turn. Our lender is beloved Countrywide. We were advised to put our home up for sale and did so. We have an offer on the table but it is about $25,000 less than what we owe. We would like to keep our home but are unsure of what the best options are for us as we have heard that Countrywide likes to drag their feet in doing short sales. Any suggestions.

Answer 1

Ask your lender to accept the amount offered as a "Short Sale".

I have lost the term in my mind as to accepting it without reprisal. (they don't come after you for the difference.)

Your best bet is to call or E-Mail Dave Ramsey, (nationally syndicated radio host)  and he can guide you through the process.

Answer 2

Is your payment current?

If they are current then no bank will do shortsale.

If you are more than 90 days late then call countrywide and ask for short sale package.

Every bank do short sale.

Accept the offer subject to short sale approval.

During the short sale make sure that countrywide will not come back to you later for $25,000.

They should show that as loss.

The payment should be applied as full payment for the mortgage.

You may have to pay taxes for that $25,000 at the end of the year. Try to see that if you can negociate that with the bank but it is too difficult in most cases.

If you want to live in the house then there are very few options available.

1. Try to re-finance....

2. Ask a family member or friend to buy the house for less and rent you the house with buy back option.

You can do the above technique with local real estate investor but in most cases they charge lot of money.

3. Declare bankruptcy.

4. Re-negociate the mortgage term with countrywide for lower payment. Many banks are now happy to deal with you rather than getting the house.

Answer 3

help is on the way.