I bought an investment house (flexibale rate),if I ignore the mortgage will they come after my other assets?
I am trying to sell it for the last 2 months but no buyers are interested.I still make enough to pay the mortgage but I am at a point that I am willing to lose my credit if this is the only results! I hope the bank will not use my income and assets to come after me!
One final note; I bought the house for 330,000 and it might worth 300,000 now.but there are no buyers!
Can you please help!
Answer:
If you can't sell it at 300k it isn't worth 300k. If you don't pay your mortgage (a) your credit will go in the toilet (b) the bank will foreclose & the house will be auctioned off. If the bank realizes less than the mortgage balance plus their court costs & attorney fees, they will get a "deficiency judgment" against you for the difference. This judgment will constitute a lien on your other assets and they will seek to collect the judgment in any way they can.
You are better off selling it for whatever you can; borrowing the money on your other assets or getting a personal loan & paying the bank the difference. You'll take a bath, but you'll still have your credit & no judgments against you; so you can live to fight again.
First of all the bank really does not want your property and therefore they will usually do what ever it takes to help you. You will need to make an appointment with the loan officer and ask for a forbearance agreement in where you two will work out a method by which you will avoid all that you said. If you are foreclosed on and you do not file for bankruptcy and the property does not bring enough money at the auction then they can go after you by filing for a deficiency judgement at which point they can even attach your wages. Go to the bank first it's your first step in many yet to come.
Buena Suerte
The bank will sell the house and you will be responsible for however much is left owing after sale. You would be better off to rent the darn thing and pay mortgage on it.Loss of your credit rating can hurt you for a reallly long time.
advertise your property in the local newspaper with a "motivated seller" hint. local investors will start calling you. try to make it a short-sale meaning, they will deal with the bank in taking over your property at a lower price amount. sometimes, the bank will take a loss esp when you show them hardship. in their point of view, a small loss is better than a big loss.
just make sure that the take-over (short-sale) will stipulate complete loan forgiveness to you.
What they typically do is sell the house for what ever the remaining loan amount is. However if you owe more than what they can sellit for then you will have to come up with the difference somewhere. 2 months isn't a long time to be on the market now. How are you letting people know that it's for sale. if all you have is a sign in the yard and an ad in the paper then you need to do more. Find a local For Sale By Owner in your area and put an ad there.
You did not buy, but you are buying an investment house. Do not default. You do not want to lose your credit. Without credit you won't be able to have certain luxuries like cable/dish TV, you will have to put up cash deposits where credit served the purpose. It will be hard for you to rent/lease/buy a home, a car, etc.
Rent it out, or change realtors. A good realtor should be able to find a buyer within a month.
In the future, make yourself a corporation and have the corporation buy the investments. Then creditors cannot come after your assets.
Hi Swan M:
Where is your property located? If you are in the Inland Empire California, email me because I am looking to buy or lease option.
If you are anywhere else, go to craigslist.org, your area, and post your house for sale. Put in there somewhere that it is URGENT and that you are willing to work with a potential buyer.
Also, look in the 'wanted' section for 'want to buy' or 'want to lease option'.
Do everything you can NOT to fall behind in your payments; either you will have a problem or your potential buyer will have a problem if you are not up-to-date.
Good luck.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: