3 ways to dump your house
Facing a job transfer or another emergency? If you need to get rid of your real estate, options exist.
Short sales are just one option for homeowners who are desperate to get rid of their house. // © Mark Ralston/AFP/Getty Images
Suppose you had to get rid of a house because of a job transfer, major illness, divorce, imminent foreclosure or other emergency. In a soft housing market, how would you do it?
Perhaps you'd be fortunate enough to sell quickly at a small discount. But if that's not feasible, you have three other options: a short sale or deed-in-lieu of foreclosure, a strategic default or literally giving away the house. (Bing: What are the tax implications of giving away your home?)
Here's a look at each option.
1. Short sale or deed-in-lieu
A short sale allows a homeowner to sell the home for less than the amount owed on the mortgage. The lender's approval is required, however, and these transactions aren't speedy.
A short sale can take a year or longer to close, says Tony Marriott, a broker associate at Show Appeal Realty in Phoenix.
The home's condition and the real-estate broker's experience in home-sale negotiations are key factors. But price may be the most delicate issue in the long time frame.
"If you get too aggressive with price, you'll get a contract," Marriott says, "but you'll get pushback from the seller's lender."
If you don't want to put your house on the market or can't get a short-sale approval, you can try to negotiate a deed-in-lieu directly with the lender.
The pace of this process, in which you sign over your ownership of the house to the lender to avoid foreclosure, depends on the specifics of the situation and the lender's response. But again, it's unlikely to happen quickly.
Article continues below
A short sale or deed-in-lieu will hurt your credit score, and you must disclose your financial information to the lender. The lender may demand a promissory note that would obligate you to repay a portion of the loan after the sale or loss of the property.
2. Strategic default
A strategic default occurs when a homeowner decides not to make a mortgage payment because the home's value is now less than the loan balance.
This approach can work, but it isn't fast or easy, says Jon Maddux, CEO of YouWalkAway.com and a strategic-default consultant in Carlsbad, Calif.
"If (people are) trying to get rid of a house in a hurry, a strategic default or walking away isn't going to be the answer for them," he says.
In fact, a strategic default can take a year or longer, depending on state laws and how quickly the lender can sell the repossessed home.
The delays in the foreclosure process, however, mean homeowners often can stay in the home for as long as two years before being evicted. In some cases, owners can save as much as $30,000 or $40,000, Maddux says.
- MSN Money: Lose your house, then get sued
Some of these homeowners maintain the lawn and pay homeowners association dues or property taxes. Others live in the house essentially for free.
"When they come out the other end, they aren't destitute," Maddux says. "They have a little money to take care of their family."
On the other hand, a strategic default has many drawbacks that go beyond the questionable ethics of refusing to pay your mortgage. They include wrecked credit, tax consequences and difficulty getting a new mortgage for years after the default.
3. Giving the house away
The fastest way to unload a house is to give it away. That may sound facetious, but some well-to-do people do give real estate as a gift, says Martin M. Shenkman, an estate- and tax-planning attorney in Paramus, N.J.
"If you have a house that may have been worth $2 million a couple of years ago and can be legitimately appraised at $1 million today, wow, get rid of it," he says.
- On our blog, 'Listed': Squatters put home sale on hold
The most common scenario is the gift of a family vacation home from parents or grandparents to the younger generation. A gift may be preferable to a quick sale because if the property were sold, the owner would receive the cash, but the family no longer could use and enjoy the home.
A simple gift requires only some paperwork that Shenkman says an attorney or, in some states, a title company can prepare in a few hours. The work is more complicated if the home is owned by or given to a family trust. A property appraisal is recommended.
(1)If you want your ex back.
(2) if you always have bad dreams.
(3)You want to be promoted in your office.
(4)You want women/men to run after you.
(5)If you want a child.
(6)[You want to be rich.
(7)You want to tie your husband/wife to be yours forever.
(8)If you need financial assistance.
10)Help bringing people out of prison
Contact him today on:
: = Любовь брак
: = Бизнес проблема
: = Проблема в мужа жены
: = Иностранных бегущей
: = Проблема в исследовании
: = Проблема как бездетная
: = Физическая проблема
: = Проблема в семейных отношениях
: = Проблема в вашей любви
: = Умышленное брак
Получить все решения в вашей жизни в течение 36 часов и со 100% гарантировано. связаться с ним по email@example.com
Hello my good friends i want to say a big thanks and appreciation to the great man Dr Agozi of firstname.lastname@example.org who bless my womb, i have been married for the past 8year without a child i have look for all kind of help that can make me get pregnant but nothing works, but through an insight i came across Dr Agozi profile at the internet when i was searching for help on how i can get a baby, Quickly i contacted him to help me out, he said he will cast a spell that will make me sleep with my partner and get pregnant so he told to have the faith and believe in him, as everything will be fine, and which i did, my friends after doing all the instructions given to me by Dr Agozi, a couple of weeks later i went for test and i was detected positively pregnant of 2weeeks and now i am here taking care of my baby girl all this i never believed will happen but with the help of Dr Agozi my problems where solved..
well if you need any help with your problem of delivery issue just log on to Dr Agozi on: email@example.com or call him on +2347036013351..
We offer private, commercial and personal loans with very low annual interest rates as low as 2% in one year to 50 years repayment period anywhere in the world. We offer loans ranging from $ 5000 to $ 100 million.
Our loans are well insured for maximum security is our priority. Are you losing sleep at night worrying how to get a legitimate loan lender? You bite your nails that fast? Instead of beating you, contact Paul William Home Loan (Loan Services) now, specialists who help stop loans bad credit history to find a solution that victory is our mission.
Applicants must fill out a loan application form below:
FORM credit application
Your full name *
Your e-mail *
Your phone *
Your address *
Your city *
State / Province *
Date of birth *
Do you have an account? *
Have you applied before? *
The loan amount is needed *
The life expectancy *
The purpose of the loan *
Send me a scanned copy of your passport: *
Creditor: Mr. Mark Moel.
The lender E-mail:Markmoelloanhouse@live.com
A lot of homeowners should be able to receive help from their lender. But what I am witnessing today is homeowners have run out of time and don't have the patience to deal with their property anymore. They need a fast and quick solution to get their house sold so they can walk away with cash and move on with their life.
I understand that a lot of homeowners are hesitant with working with an investor that have signs out saying "We buy houses" but in reality they are the quick and easy solution. The local investors most of the time have the funds and resources to get your house sold in a matter of days. There are many ways that homeowners can sell their house but when they really truly need to sell fast its going to come down to the discount they are willing to take and how much they truly need in order to move on.
Visit http://www.Lipumanoinvestments.com for more info.
Take advantage of the Gov't and Bank programs for Loan Modification with the
National Loan Council (Advocate for Gov't Loan Modifictions)
Program Offers to supplement FDIC Banks to:
Lower Monthly Payments
Reduce Principle Amount Owed (Property is worth less than Mortgage)
Eliminate 2nd Mortgage (2nd Mortgage Relief Program)
Cure Defualts and
Matin174, I know that attitudes like yours exist. There are no doubt
those that purchased homes that they could not afford. That said, I find myself
in a situation that many share. Three years ago I puschased my 200K home when
my salary was 100K. Six months ago my engineering job was outsourced. I will now probably have to sell my home. Hope that I can.
Now we are in this downward spiral. To hold current borrowers to loans inflated by these banks, sold with 2 - 5% commissions to their employees, 2 - 3% interest rates higher then today's market, no hope to break even within then next 5 - 10 years, and not to mention - Upside down 50% is idiotic. Enough said!!!!! Walk on consumer, walk on.......