Legal Question in Real Estate Law in Texas

Hi, I live in Houston texas and am currently facing a possible home foreclosure. My husband lost his job in January and has not been able to find another one. We have cashed in our retirements and have been scraping by, but it has been getting harder and harder. We are facing having to move so that he can get a job, I have family in dallas and there are lots of jobs in his field there. We currently owe 255,000 on our house and realistically could only get 215,000 -220,000. We are not sure where to start or where to go from here. We only have 1 mortgage on the house and it is through GMAC. Should we call the lender and ask for a short sale or a deed in lieu ? How can we avoid a deficiency judgement? Would it be better to file bankruptcy?? If my husband has a job we could afford our house and bills. Not sure where to go from here, any advice would be greatly appreciated.


Asked on 8/10/10, 11:17 pm

2 Answers from Attorneys

You have a few options. If you can't sell the property for more than the loan, then you can ask for a deed in lieu (you give the property back to the lender) or a short sale (you sell the property to a third party for less than the loan.) In both cases, you can negotiate with the bank to avoid a deficiency. Bankruptcy is an option, if you have other debts that you can't pay. If the house is the only thing, then try the first two options.

If you want to keep the house, you may want to see if they can modify your loan into something you can afford. You would need to have an income, though.

If you're interested in a short sale, call me, as I know groups of investors who might be interested in buying it.

Dave

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Answered on 8/16/10, 6:20 am
Cheryl Rivera Smith The Smith Law Firm

Call a good real estate broker in your area who is familiar with and handles short sales. It is preferable to a foreclosure. Time is not on your side, so please act quickly.

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Answered on 8/19/10, 7:45 am


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