I own my home w/no mortgage payment, title is in my name, my fiance & I are moving in January question is?
by Mortgage Rates on Monday, October 4th, 2010 | 4 Comments
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The bank would not let you get 12 months behind. Call a the morgage company, your way off base. Credit is something to value and take care.
You don’t know what the future may hold. Do not sacrifice your credit for a few thousand dollars. You might really need that credit before it is all said and done.
Besides, as the economy improves, especially with another Jimmy Carter in office, inflation is more than likely going to take off. That will make her loan of the house a really good deal and if you sell it in say 5 years, you might make a good deal more money.
But, the main reason is that you really might need that credit.
I am not sure how talking the bank into a short sale would effect your credit, but, if you can talk them into a short sale and keep your credit rating that would be good.
I suggest a different approach entirely.
Both of you take a 2nd job each. Stay with me.
call the lender and ask if you can switch to making 2 payments
a mo.
on the first of the mo, make the regular payment with one check.
Then, write out a 2nd check for the same amount [assuming you each
have a 2nd job] and state “apply only to principal.”
do the same thing on the 15th.
In under 3 yrs, the debt on the house will be less than than the
equity. Then, NLT 3 yrs, the land value will begin creeping back up so you will be gaining equity via appreciation AND principal payments too.
and your credit will sky rocket
when the debt becomes less than the equity, drop the
2nd jobs.
Why would you think the bank will not garnish her wages? You are essentially saying they will lose 85K + prep costs + costs in actually selling it. 5K a year for 3-4 years til housing starts to turn around and then selling is a whole lot better than owing the bank 85K.
Talk to the bank, try to renegotiate the interest rate or maybe see if they will go interest only for a number of years, you’ll have to punch both scenarios into an amortization calculator to see where your best bet is.