Foreclosure consequences....

[hullabelew]

Horrible, this idea.

Foreclosures will affect tons of other things, besides loans. Insurance companies look at foreclosures as do potential employers. Just about everyone runs a credit check when 'credit' is involved. Things such as cell phone plans, cable, internet providers are essentially a credit agreement.

Some organizations run background checks for various reasons, so lets say you are on the board of your kid's soccer league and you are asked to sign a loan document as a part of the non-profit to get repairs done to the concession stand. It would be damn embarrassing for your foreclosure to show up and the soccer league gets turned down because of your foreclosure.

 

[zork]

mybe someone will buy it from you as is, no commission, buyer pays closing costs for what you owe?

 

[txre]

How about something like Homevestors or one of those palaes that claim to buy ugly houses.
I think if you owuld work with you mortgage coampany you could have the outstanding vack payments pput onthe endo fo the loan.
Put it on the marlet for sale or for rent and go with the one that popsup first.Yes you can list for lease or for sale at the same time. If it leases then you will be OK, provided you continue to make you monthly payments.

 

[BrûléeOrange]

Don't employer's look at credit histories these days? IF, per chance, you find yourself looking for a job in the next 7 years, this could be yet one more hurdle to land one.

You will live to regret the foreclosure for years to come. That's not a fresh start, it's more akin to taking the fork in the road to hell. You think your daughter is embarassed now....just wait, 'cause it's gonna get a lot worse if you make this mistake now.

 

[Franco]

I think that there are recourse and non-recourse mortgage loans, and that defines whether they can, after taking the collateral, come after you for the remainder.

 

[Bookman]

That's true. But I've never seen a non-recourse mortgage loan.

 

[pasotex]

by Texas law, home equity loans are non-recourse

I have never seen a primary mortgage non-recourse because I think this would make it non-conforming and it could not be sold on the secondary market (in addition to the rather obvious reason that no lender would agree to it)

 

[Bernard]

Lots of people have non-recourse home loans, just not in Texas. As a practical matter, every home loan in California is non-recourse. In CA, if you default on your mortgage, the lender must choose to either foreclose on the property or pursue a monetary judgement, but not both.

Bernard

 

[KC-97HORN]

Let me pile on as well.

I am stone cold STUNNED that you would consider this move with 20% equity in the house.

Even if $10k in repairs is needed.

Freaking list the house for $97k.

Put that in the buyers disclosure, sell it for $13k below value, give the realtor the $6k dcommission and you walk with about $1k in your pocket- no credit hit, and you are out of the “bad” area.

If the home appraises for $120k, then set the sale for $102 or 103k and that still should get a buyer pretty quick.

In that case, everyone wins, the buyer gets about 3% equity (after repairs) right from the start. You dump a problem, and a realtor will LOVE a quick sale which means little work and about $1500 in commission for the listing agent.

 

[JohnnyM]

I hope we didn't scare BurntBlood off. I hope he realizes that we are just all trying to steer him in the right direction and that he was not looking at the whole picture.

Come back BurntBlood.