I bought a house, and now foreclosure is an option what to do?
S R asked: I bought a house about 7 months ago with my then fiance. She let after only 1 month and the payment was based on both of our incomes. Now m...
S R asked:
I bought a house about 7 months ago with my then fiance. She let after only 1 month and the payment was based on both of our incomes. Now my savings have dwindled to nothing and I have been told I will be layed off in 2 months if I don’t take their job offer in another city. I have had my house for sale for 4 months and no “bites” at all and now I am wondering what would happen if I stop paying and let the bank foreclose? What are my possible options -I cannot afford to keep the house and would like to get out(my company has offered me another job in another city -with a paycut).I have an FHA loan and my ex-fiance is also on the mortgage- what would I be liable for if I just stop paying?I have 2 months left here-should I live “rent free” for those 2 months and build my savings back up a little and let the bank figure out I am not going to pay ? Or should I inform the bank of my intentions?Also what effect on my credit rating will a foreclosure have?I have had excellent credit and have
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I bought a house about 7 months ago with my then fiance. She let after only 1 month and the payment was based on both of our incomes. Now my savings have dwindled to nothing and I have been told I will be layed off in 2 months if I don’t take their job offer in another city. I have had my house for sale for 4 months and no “bites” at all and now I am wondering what would happen if I stop paying and let the bank foreclose? What are my possible options -I cannot afford to keep the house and would like to get out(my company has offered me another job in another city -with a paycut).I have an FHA loan and my ex-fiance is also on the mortgage- what would I be liable for if I just stop paying?I have 2 months left here-should I live “rent free” for those 2 months and build my savings back up a little and let the bank figure out I am not going to pay ? Or should I inform the bank of my intentions?Also what effect on my credit rating will a foreclosure have?I have had excellent credit and have
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loans for people in foreclosure
A foreclosure would be bad for your credit rating. It would take years to recover.
The danger of foreclosure: as I understand it, if the house cannot sell for what you owe on it, the bank comes after you for the difference.
Options: rent the house, to pay the mortgage, and move to the other city with your company.
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You say you bought it “with your fiance” based on both incomes. Are you co-borrowers on the mortgage and co-owners on the deed? If so, she is also responsible for the debt.
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I would avoid the foreclosure if possible. Depending on your area, I might be able to recommend someone that can help you. But you should decide ASAP, the longer you wait the more damage you’ll do to your credit (and your ex’s).