I am in a situation where I will need to go for forclosure or short sale.
What bank can do to you if you foreclose? Can the go after your savings and 401K?
How expansive the short sale can be? do you need to keep making your mortgage payments?
Your help is gteatly appreciated.
Bob, First contact your bank and see if they will modify the loan and or offer forebearance as many banks have things in place for the homeowner you just have to ask. When a bank forecloses , it goes on your credit for 3-5 years and no they will not come after your 401K. When it is auctioned, it is auctioned and it is a finished deal. Short sale can be lengthy, however it can extend your stay in your home, and will not effect your credit as severly as a foreclosure. On a short sale, I would continue to make the payments so your credit does reflect current status, but if you cannot afford to do it, and believe there isn't any hope then save what you can , so that you have means to survive. My sister went through this and it is a process, however she did sale her home and she has moved on with her life. There is always hope, just keep your life on track. I hope this helps.
First contact your bank if they can help you in this matter. Because i think the banks can give you some solution about it.
Thank you for the information. It does help a lot.
Would it be of any benefit for me to conact the bank and let them know I can't make any more payments and going for foreclosure, or it doesn't really matter ?
Alos, in case of a short sale, they ask you for your bank account information , would they try to go after your savings , or maybe try to make you pay more then they would if you didn't have anything in your account at all?
Hi Bob. Contact your bank and let them know your dilemma and ask them what they can suggest as you do not want your home to be forelcosed. I don't know what bank you have but my sister had Chase and they were wonderful with assisting her. Ask them about forebearance or a loan modification to bring that mortgage down where it could be more affordable.
In a short sale , contact an experience realtor who can help you and knows how to short sale your property. When you end up with a buyer they will ask for bank statements reason for short sale etc. Your realtor will be able to tell you what needs to be done. If your savings is attached to your Bank account , seperate and move it and do not disclose even to your realtor that it is there. No they don't make you try to pay more as a short sale , helps the bank and yourself. The realtor will list your home as a short sale , so you will probably see a lot of movement on your property but you will not have to move until the ppw is signed.
Whatever you do, try to avoid a foreclosure as the bank doesn't want your house, most banks are willing to help the homeowner to avoid another empty property. Let me know how things work, and you are also welcome to email me, jsut click on my articles and send an e-mail I will be happy to help you.
Happy Holidays, to you as well !!
by LVHighRise6 years ago
What do you think, is it easier to work with a short sale or a foreclosure?
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