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My family has outgrown our home, we need to get a bigger home but cant sell this home for what its worth. Can I foreclose
Anonymous2 views3 answers
Hi - I have owned my home for 7 years. I am not facing any economic hardship and my mortgage is current. I need to upgrade because my family has grown within the last 4 years (from 1 to now 4 kids). We bump into each other just walking around the house. I cant sell my home for what I owe on it because it 's lost value and very old (35 years) In my community, even new homes are not selling and old houses like mine in the neighborhood have been on sale for 1-2 years, some foreclosed.
I dont need any home- saving programs, I need to move out and get a bigger place. I have a good job and my only assets are my car and personal prty.
Can I foreclose without my income being garnished or any financial judgements? I am aware of the effect on my credit if I foreclose. I am ready to rent. Help
You can offer your Lender the deed to your house in lieu of foreclosure; they may take it which lets you walk away with no debt and no money. From what you posted about other homes in your neighborhood the Bank has little reason to do this. If you let the Bank foreclose on you, the Bank not only can force you out of your home, but charge you attorney fees, collection fees etc etc and also destroy your ability to borrow for a new home.
You might find my legal guide on selecting and hiring a lawyer helpful.
You might find my legal guide on Is it Legal? Is it Illegal? helpful.
You might find my legal guide on the understanding the different court systems helpful.
You might find my legal guide on legal terms used in litigation helpful.
(Even if you are not filing a lawsuit this information can be useful).
You might find my legal guide on commercial litigation helpful.
LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.
You can offer your Lender the deed to your house in lieu of foreclosure; they may take it which lets you walk away with no debt and no money. From what you posted about other homes in your neighborhood the Bank has little reason to do this. If you let the Bank foreclose on you, the Bank not only can force you out of your home, but charge you attorney fees, collection fees etc etc and also destroy your ability to borrow for a new home.
You might find my legal guide on selecting and hiring a lawyer helpful.
You might find my legal guide on Is it Legal? Is it Illegal? helpful.
You might find my legal guide on the understanding the different court systems helpful.
You might find my legal guide on legal terms used in litigation helpful.
(Even if you are not filing a lawsuit this information can be useful).
You might find my legal guide on commercial litigation helpful.
LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.
You may seek a "deed in lieu" or a "short sale" from your lender. If you don't think the house will sell, even at a price lower than what you owe, then a deed in lieu may be your only option. A short sale, however, may be possible if you think the house will sell at a price slightly lower than what you owe. Both of these require the consent of the lender.
If they decline both of these options, then you are left with either allowing the lender to foreclose or trying to sell at full price.
