Legal Question in Real Estate Law in California
Possible Foreclosure
My 20 year old daughter died in our house recently and we would like to move out asap. We owe almost $250,000 more than the house is worth due to a drop in values in my area and we also owe past due property taxes of about $8,000. We are not in foreclosure but we don't know how to get out of this under the situation. We thought of just leaving the home because there seems to be no way out. We just can't live here anymore. Can someone direct me to a possible solution.
2 Answers from Attorneys
Re: Possible Foreclosure
Your options probably are:
find a buyer to take over your loan without down payment, whose credit can satisfy your lender [they're more willing to consider such things these days, rather than face foreclosure, however it would be a tough sell];
contact the lender to negotiate a 'short sale' that allows you to sell the house for the actual value rather than the loan payoff [assumes you can find a qualified buyer at that price];
contact the lender to re-negotiate your loan down to the current actual value [might allow you to keep the house and rent it, if the rent was high enough to cover the mortgage payment or close];
contact the lender to negotiate a 'deed in lieu' where you turn the property back over to them without the need of foreclosure;
move out and let the lender foreclose.
All will have some impact on your credit, some worse than others.
Re: Possible Foreclosure
I'm terribly sorry for your loss. Some people in your position just mail the keys to the lender, it's called "jingle mail."
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
