Not one late payment ever, no other derogs, no CC debt, only a 1st mort on my primary of $266,000 and good income. How should I deal with the bank? They don't want this house either. What can be done to avoid this other than selling? (Which I've been trying since March.)
Ok. I believe a short sale is when I sell the home for less than the $825,000 owed on it, but I read somewhere here that a short sale or deed in lieu of foreclosure is just as bad as defaulting. I've been trying to sell since March and have lowered the price below $825,000. Can anyone shed some light? I'm waiting to hear from the bank's attorney. From others I know who are going through this, the letter from the attorney simply says you have 30 days to pay up or we sell your home at a trustee sale. I was worried about deficiency judgement, but this is in Arizona and they have laws that do not allow banks to go after deficiencies. I'm more worried about FICO hit and future creditworthiness.
well, if i understand LTV, I borrowed 100% of the money to build this home. (not possible anymore!) The property may be worth less now, I have no idea. I've been trying to sell since March. I owe $825,000 and I have it listed at $799,000. No hits.
I was reading in the WSJ a few weeks ago that people are walking away from their homes because the hit is easy to fix by paying CC's and other loans on time and within 6 months to a year the hit wont be as bad. I'll try to find the link or you can just search for it yourself.
But I would guess the initial hit to be in the 150-200 point range and could take up to 2 years before it starts to "Fade Away".
Thanks for the info. I will search for it. I have some worries only because I am applying for a federal job that will be going through my credit and finances with a fine toothed comb. Everything is great now, but when this hits my credit, it will look bad. I will tell the Gov. everything they want to know, but I don't want to lose out on this position because one bad investment decision. I'm out of RE for the forseeable future!