Is foreclosure ever a good strategy?
Query by confusedone: Is foreclosure ever a good technique?
I reside in a element of the nation wherte the greedy realestate agents and bankers have driven the housing prices and revenue into the ground. I owned my home free of charge and distinct, took out an 80% equity loan to buy my dream residence, now trying to sell my personal house.
Prices have fallen some 15% and dropping by the minute in the past 2 MONTHS! My unique equity loan was at 74% appraised value. Now it is a lot more then 110%!!!!!!!!!!!!!!!!!!! Yes in 2 months! So I am trying to sell the residence at the identical quantity my equity loan was at.
So my thought is, that considering that the greedy banking institutions and agents put us all here, they can come take back my residence. I can live right here for cost-free, not having to pay the payment for 9 months and conserve about $ 6K per month considering that I have a great job prior to I move. This will offset my reduction, but I know will ruin my credit for a even though. Is this wise? Can the bank then come following my equity loan bought home out of state? I am pissed as to what they did to the market here.
Very best solution:
Solution by madgooner
You had no responsibility for taking out a loan you couldn’t afford of program?
You are going to end up without credit for a long time, and (in the Uk at least), they could pursue you for a shortfall to bankruptcy.
Alternatively, get a grip..
Know much better? Leave your very own solution in the comments!
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The lenders and the real estate agents did nothing to the real estate market, the consumers are solely responsible. Check out the definition of economics.
If you allow foreclosure on your first house, the lenders will take it and then likely come to you for the rest of the money the foreclosure didn’t cover. When the lender realizes that you own another property (and they will because deeds are public information) you will be amazed how quickly their expenses will accrue and they will be attached to your “dream house” as a lien which will continue to accrue more interest (12% a year) until it is paid off. Then there is the unpaid taxes …
No, foreclosure is not a good strategy for you unless perhaps you were dying of a terminal disease and had no heirs. Instead, I suggest you take out a mortgage on the “dream house” to pay off the the other mortgage if a better rate can be assumed. If you wait until after foreclosure, you will be up a creek.
You are blaming the banks for you taking out a loan? You took the money and now you don’t think you need to pay them back? I think you need to look in the mirror to find hte greedy one.
Of course the foreclosure will destroy your credit. It is doubtful you will ever purchase again. They can sue and take other assests of yours to recover their loss. It doesn’t matter what state you have property in, you spent their money and signed a contract to repay them.
Listen how do you know the appraised value lost that much value in that short amount of time. Which I do not believe I am a real estate broker and I handle loans. Whatever you do do not stop payment on your mortgage this will create the biggest crisis in your financial life. this will ruin your more than a bankruptcy. I know this because I handle forecloser property everyday in southern california and I work with the banks. Banks and the agents are not ruining your equity. economics did!! Check it out!!
If you want advise you can send me a email
if your like
Sam Perez
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