Sale of 2002 MH - Posted by Kim

import · July 22, 2003, 2:50pm

Posted by Greg Meade on July 23, 2003 at 18:50:56:

Kim,
I feel your pain…many years ago I was caught in a similiar situation in Spanaway, WA. Early 80’s Boeing laying off, etc. To save your credit put an ad in the Post -Int offer ing the almost new home for pay-off amount plus you will pay new owner 6k CASH. Your Bank or lender will usually re-write the loan with your name off title and you lose your equity and 6k. This is money you seem willing to spend to save your credit…very good move. Excellent credit will allow you to recoup this 6k much faster than with a 7 (OR 10) year ding. Good luck and God Bless!

import · July 22, 2003, 2:50pm

Posted by Kim on July 22, 2003 at 14:50:21:

We have a 2002 Palm Harbor home located in a park in Auburn, WA that we have been trying to sell since October. We are asking less than what we owe but have still not received any offers or even much interest.

We are currently paying the mortgage on the MH and also paying rent in a new city where we moved in the Spring for my husbands new job. It’s getting more and more difficult. If it ends up in foreclosure or we do a short sale, can anyone tell me what the effects are on our credit?

Do you have any other suggestions on what we could do?

Thanks
Kim

import · July 23, 2003, 12:06pm

Re: Sale of 2002 MH - Posted by Dave Swett-CA

Posted by Dave Swett-CA on July 23, 2003 at 12:06:32:

Foreclosure and Short Sale are two different sides of the same coin.

foreclosure means that you hve walked away from the deal and the lender is forced to take legal action against you and will probably file every kind of derog that they can on your credit report.

There is a possibility that they might file a deficiency judgment if they do a court action–but this is unlikely. Really you are in the middle of the legal system and do not have any knowledge and info as to your standing. It might be worth your time to spend the bucks for some legal counsel from a REAL ESTATE attorney.

A short sale means that you are trying to solve your problem to the best of your ability without forcing the lender to take action–yet. I like your comments about making an appraisal (get it in writing or document it somehow), save all of your paperwork showing all of your offers, etc. And communicate to the lender what you are doing and ask for their co-operation in making the short sale.

Your goal will be to sell the MH and to have the lender agree not to report a derog on your credit. The derog notice is an action that is totally controlled by the lender and you can negotiate with them so that they will not make that report.

Even if you end up on with a deficiency from the sale, you can still negotiate with the lender for some payment plan until the debt is gone–like having to pay alimoney to your spouse. this is still better than doing a walk away.

that credit report ding will follow you for what seems like forever (7 years) and it will cost you extra for future financing of autos, TVs, rental applications, house purchase, on and on. It makes no diff whether you move 100 miles or 3000 miles, get divorced, remarried, that ding will follow you.

Thus, it is worth having a knowledgeable attorney give you advice and talk to the lender on your behalf.

Good luck with the adventure of your life.

DJ

import · July 22, 2003, 10:43pm

Re: Sale of 2002 MH - Posted by greg

Posted by greg on July 22, 2003 at 22:43:08:

You say you are just asking for the payoff. That may sound like a great to you but it still may be way more than the home is worth. How much did you put down on this home. To be totally honest the home may be next to impossible to sell. Right now it is a buyers market and homes are flooding the market everywhere. IF you let the finance company have the home back that is a huge black mark on your credit, right up there with bankruptcy. Also, if you have the finance company have the home back then they resell it for $10,000 less then you owed then you will owe the finance company the $10,000 that they say the lost on the deal. It dosent sound good but you are not the only one in this position.
Good luck in whatever you do.

Scott

import · July 23, 2003, 10:19am

Re: Sale of 2002 MH - Posted by Kim

Posted by Kim on July 23, 2003 at 10:19:20:

Thanks Scott. Just to clarify, we are not even asking for the payoff, we are asking WAY less. And according to 2 different realtors who appraised the home, we are asking $5000 LESS than what it’s worth. And willing to accept even less than that.