Home foreclosure questions!

[Stayseeliz]

I have a few foreclosure questions if anyone can help. Our house is on the market and we're currently up to date on our payments. We're getting ready to move to a rental where we plan to stay for 5-10 years and save up to build another house much later down the road.

Our house has been on the market for awhile and we've had a whopping 3 showings. We're really starting to get nervous about whether we'll be able to sell this house or not. By the time we sell we'll lose about $2000. We have no equity in the house.

We HAVE to make this move and will not be able to make house payments here forever.

Our LAST option is to let the house be foreclosed on but what happens if we have to go that route? We're both on the deed but only DH is on the loan. How long would it take before we could buy another house at a decent rate? We won't need any other credit for awhile as we just paid off our credit cards and have no car loans, etc..

Thanks for any info..Again this is our last option but if this house doesn't sell I don't know what else to do. We're moving because we can't afford this house. Thanks!

[Herausgeber]

Drop your price, if you can. Though it sounds like you don't have the cash on hand to pay the difference if the proceeds are less than your mortgage. Is that correct?


Foreclosure sucks all the way around, but in some cases it makes the most sense. Given your time frame for buying again, you should be OK.

[momof2princesses]

pm you

[boongirl]

Are you working with an agent? Because if you are and still not selling, I would get another one. If you are not, you might think about that. Foreclosure stays on your credit records for a while. Plus, I have heard that foreclosure is actually the way to go after bankruptcy. In other words, if you foreclose or are forced into bankruptcy, you may end up paying for this house, but for a long time. Plus, if they foreclose, then they can take any other assets as well and perhaps for a while.

Sounds to me like you need to call the mortgage company and have a good talk about your options. Also, if you have not already staged your home, you should consider doing this. Make it look like a model home. If few people are coming, then it is priced too high and does not look worth it. Make it look as close to a model home as possible, thin your clutter, paint, re-arrange furniture, fix problems. Do some searching on the internet for help.

[Stayseeliz]

Thanks for the tips..We are working with an agent and I'm going to have a talk with her on Monday. I guess it is priced too high although it is around what other houses around here sell for. It's just a slow market here. Foreclosure will be our absolute last option. Thanks again for the tips. I'm going to talk to my agent and tell her to step up the sales pitch!!

[Herausgeber]

You know, something else I've heard of people doing in this situation is offering up the house as a rent-to-own deal, in which you give another family credits toward a downpayment on the place as a percentage of their on-time rent payments. Of course, this also only works if you can get your monthly cash flow on the place to break even, at least.

[Satori]

I have to agree, stage the house, bring someone in to do it for you if you have to, they are worth there weight in gold.

[Treasuremapper]

I suggest that you go to http://www.creditboards.com and post your question there, too. Or at least read through some of their forums. They are experts on questions like this.

[SleeplessMommy]

Originally Posted by Herausgeber

You know, something else I've heard of people doing in this situation is offering up the house as a rent-to-own deal, in which you give another family credits toward a downpayment on the place as a percentage of their on-time rent payments. Of course, this also only works if you can get your monthly cash flow on the place to break even, at least.

Rent-to-own is a good idea... of course make sure the rent is higher than your mortgage payment + ins. + taxes. Realtors don't mention this often because it delays their commission. A family member _almost_ sold his house this way.

Also, If you have equity in the house (for example you paid 10% down) you can offer partial seller financing. (you provide a 2nd mortgage to the buyer of 5% or 10% of the selling price. (rate to be negotiated) You get a higher resale price with this option "in exchange for" taking the risk that the seller will default. Ask the realtor.

You can do your own marketing, too... craigslist.org (free) ebay.com ($25) and talk to _everyone_ you know... Keep a brochure handy at all times. Fire and replace the realtor is there is no action in 90 days.

While you are at it, talk with the mortgage company. Do they have any options for you to pay less money? Such as the dread 40 year mortgage. : Or an interest-only mortgage?