IGX

The condo building I live in is undergoing a rash of short sales and foreclosures and property values have dropped insanely low. For several reasons it is beginning to look as though the logic tilts in favor of at least considering a short sale or walking away from the mortgage altogether.

I'll give a brief rundown of why, since buying high and selling low is usually stupid. A special assessment has driven the monthly nut over what it can be rented for, even at <4% interest. The mortgage balance is 2x the market value. I'm getting married and this isn't a place we'd live long term (purchased in 05 as a first home).

I'm wondering if anybody has experience specifically with short selling and what the impact was on their credit?

http://www.daveramsey.com/article/what- ... realestate

good luck.

Talk to a pro.

powerlifter54 wrote:Talk to a pro.

Word.

BTW, I have found otherwise honest realtors to be despicable lie-men in this regard. They greatly understate the risk to one's credit.

I have tried to work with my lender on a SS to no avail. They see that I've made my payments, and that I have the income to make the payments. I have an interested buyer, but nowhere near what I owe. Townhouses in my hood have dropped about 40% from their peak, which came about a year after i bought. It's like they're daring me to walk away. So, in light of my move, I told them I'm leaving the house next week, as I can't afford to rent in a new city and keep making the payments. We'll see where it goes from there.

My BIL and his wife walked away from a McMansion that was hugely underwater in Las Vegas. It destroyed their credit. Moved to Arizona, rented for a while, then got MIL to buy the house for them using pre-inheritance dollars. They make all of the payments and are paying back the downpayment too. I forget their estimate for when his credit will be recovered.

If you're getting married, maybe that gives you "fuck you" coverage when your lender talks about how your credit will take a hit in discussions on a short sale or walking away, since you can use your wife's good standing for the next casa?

I'd definitely think through the whole getting married and insulating her credit from yours thing as you make your decision.

Buy a townhome, always get fucked.

Around here, you bleach the carpets, tear out the drywall, and literally sell everything inside, the sinks, the heating/cooling unit, the windows, the trim...and just leave the keys on your way out.

Based on their behavior, the banks apparently prefer to handle it this way.

The weirdest thing about foreclosure is people stop making payments and can just live there for over a year before the lender gets through the back log of foreclosures and says, "Uh, you gotta move out." In the meantime you are effectively saving a ton in "free" rent.

Grandpa's Spells wrote:The weirdest thing about foreclosure is people stop making payments and can just live there for over a year before the lender gets through the back log of foreclosures and says, "Uh, you gotta move out." In the meantime you are effectively saving a ton in "free" rent.

My former next door neighbor did just that. He was renting from a good friend who got divorced and a financial fallout ensued. The friend told my neighbor not to worry about paying rent as he was just going to walk away from the house. My neighbor lived there for about 18 months FOR FREE before moving out the week before Easter.
Lucky me, now I get to mow two lawns now and am looking forward to the Niggerson's moving in whenever the bank unloads the property.

Whatever you do, just remember in the future that owning your home is always a great investment.

I've known of people who did this (friends of friends). They decided that having to rent for several years was worth not taking the hit on their mortgage. We took a loss when we sold our house in VA a few years ago, but it was nowhere near large enough to make walking away tempting.

Do you know if IL is a non-recourse state?

Pinky wrote:Whatever you do, just remember in the future that owning your home is always a great investment.

LOL, yes. That has been the key takeaway.

I've known of people who did this (friends of friends). They decided that having to rent for several years was worth not taking the hit on their mortgage. We took a loss when we sold our house in VA a few years ago, but it was nowhere near large enough to make walking away tempting.

Do you know if IL is a non-recourse state?

It is not. Early research indicates the company holding my mortgage has apparently been quite amenable to short sales, however.

I'm still trying to get my head around the phrase "otherwise honest realtor."

On a lighter note, remember the good old days when "real estate only ever goes up!"

and am looking forward to the Niggerson's moving in whenever the bank unloads the property.

Usually what happens. My new neighbors are great people with fights all day and people stopping by to yell at them and a few baby mommas screaming at them day and night. And dont forget the ghetto rides with stadium sound systems

tough old man wrote:

and am looking forward to the Niggerson's moving in whenever the bank unloads the property.

Usually what happens. My new neighbors are great people with fights all day and people stopping by to yell at them and a few baby mommas screaming at them day and night. And dont forget the ghetto rides with stadium sound systems

I'll have to keep Chesser on retainer to help keep me from going completely batshit.