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I going through divorce with my wife now, since the house has the second mortgage on it, we owed more than the house cost. It's not good to have the house on rent, it's better cut it off. I decided to
short sale the house which is if the house is sold in the smaller amount, the mortgage company will
take the hit but still able to collect some thing.
Since there is no body give any offers, I might look in to Deed-en-Lieu foreclosure (give the key back to the bank volunteerly). It's better than foreclose because I will still get a chance to finance a house
in the future. I wrote a letter to my bank to apply Deed-en-Lieu, if there is an offer and short sale come throght that is even better, I do not want to run out of time for the Deed-en-Lieu.
Any body knows that How long it takes to fix my credit after the Deed-en-Lieu happened?
I would have to direct you to http://www.creditboards.com to find your answer there... ask them! they are all real smart when it comes to credit issues
I spoke w/my brother who has experience in this. He told me that it really depends on what the rest of your credit is like, ie...credit cards, student loans, etc... If it is good then this will affect your credit, but not terribly. Much better than a foreclosure would. Also, the situation you are in helps explain the WHY you are having to do this. He also pointed out that the housing industry is seeing such an incredible amount of foreclosures they will do just about anything to work with you so you don't have to foreclose. Also, don't wait for a reply in a letter, call them. If you really want to keep the house, call them, explain your situation, be honest and they will probably be willing to work with you.
Sorry to hear your situation, divorces are not much fun.; "been there, done that."
Work in a bankruptcy firm here in Canada...laws are different up here...
when the keys are turned back to the mortgage company, it's sold and the shortfall would still be the owners.
We up here suggest the alternative to bankruptcy which takes care of the shortfall and after the 9months in which you obtain your official discharge (although it shows on credit bureau reports for 7 yrs.) you can virtually start rebuilding your credit..traditionally, following re-building guidelines, you can have total point system back within 2 years..as well can get mortgage as a 1st time home owner as discounted rates...starts you off fresh..I could suggest you speak with someone down there...the majority of our clients are due to 'divorce' or 'illness' and this is exactly what the act is meant to address...
I been told that call them once a week and keep them posted and ask what do they need.
I also keep other credit cards bill pay on time. I used to have perfect credit score like 785.
The first mortgage and the home equity loan is the one screw me over.
After divorce I could not pay it. Hopefully they approve me the deed in leau foreclosure.
I was fighting with two mortgage companies. the second mortgage company does not want to be the only one taking a lost. they want the first mortgage to take some lost too. A good agent involved with two mortgage companies is criticle. The finally got approved. It was a close shave. I had the house sold in a lower amount of money right before the market crashed. I been told it will still stay on my credit when I buy house again. Its not as bad as credit but still bad enought.
Syl
Hello. Well, we did a Deed In Lieu almost 2 years ago. We were in California at the time.
I don't know if they handle it different in different states. Not to discourage you, it didn't go at all like we were told it would. If we did it again, we would just do a foreclosure. We were told that if we kept making the payments on time until the Deed In Lieu went through, it may not effect our credit as bad. We were never late on our payments and never missed any. We had some personal hardships that affected our finances and an ARM that was going up soon. We knew we couldn't handle a higher payment. Anyway, it took about 4-5 months to get it finished. After making several payments, it didn't go through the date they told us it would. It not only shows us as missing 1 payment, it also shows up on our credit as a Foreclosure.We were very discouraged. If we had foreclosed, at least we would have those extra payments that we made. On our new credit report, it shows that it will remain on our credit until 2014.
When we got all of our paperwork turned in to start the Deed In Lieu, we were also told that as soon as they approved the Deed In Lieu, we needed to be out of the house within 3 days. I don't like to sound so negative but it was a big nightmare. We tried to sell the house first and had it in top shape, so we also spent a lot of money to fix everything up as well. It was a good thing too because they also sent someone out to take dozens of pictures of the house. This is my personal story and my opinion. Maybe there are other people that had a better experience. I sure hope so and I wish you the best of luck with whatever you decide to do.
So sorry you went through all that to no avail, Kch! However, one missed payment then foreclosure should raise the eyebrow of anyone looking at your report, not just the score. I'm guessing you're in a common spot and something will be available to you to correct the bad mark on your credit report.
Sylvain, congratulations on your outcome. I can imagine the stress you went through!
I lost my house. There was no other recourse for me, and trying to do something different or even getting information from the mortgage company to keep my realtor abreast of all the changes and make every effort to sell before foreclosing was a nightmare. Just a nightmare.
Thank you 4Paws. I got some good news today! We found out that we now qualify to purchase another home.
I guess keeping our payments current did help out. We were very happy with that news. It has been a few months short of 2 years since our Deed-In_Lieu.
We are living in a different state now as well, so I don't if that makes some sort of difference. From my own personal experience, I would say that staying current on all of our other payments over the past year and 10 months, helped us big time.
Now I can end on a positive note because since the Deed-In-Lieu, it gave us a chance to
look at our current financial situation and now we know what price range we can be comfortable with.
Yes, congratulations Syl! I have to agree with 4Paws, divorce is a nightmare too!
Very good outcome, Kch!!! I think there have been many, many changes in two years, and with the economy as it is, getting people into affordable homes is basic, imo. Can't do anything without a home base to work from. Having your own home, that you can afford and know you can't be removed from - it's so important, no matter how fancy it is. My credit dropped from over 700 to nearly 500 in a matter of weeks, but it's coming back a little at a time and I am EXTREMELY fortunate to have a friend willing to finance my next home, which I know I can afford. He says the interest is better than savings, and he's good with having the regular income he'll have from my monthly payment. I'd be lost without that backing. Plus, I found a place that is a really good price and provides for the needs of me and my dogs. In another state, too - FL.
In my experience in CA (1980-91, then again 2003-09), the systems have been broken for a long time, and you were an early casualty, so perhaps living in another state helps!!
Thank you 4paws!
Wow! You are lucky to have such a wonderful friend!
It will make a huge difference knowing that we will have a payment that will work
with our budget.
I'm glad that you found a place that will work out well for you and your dogs.
When we left CA in January, there were so many foreclosed homes. It was so sad.
We lost our house too, but I felt so bad for all of the other families. I hope things turn around soon.
Thanks again for the kind words!
:-)
Yep, I'm lucky. I doubt I'd be able to even rent a place!!
I think that in these times, we all need to work together. I was also lucky to find a place for $39K that meets my needs and not be in a place of cold, harsh weather or too far away from everyone and everything as I was in my last home, so employment opportunities will be greater as well.
