Ramifications of having your house listed for sale while going for a mod?

luvmyhorse

LoanSafe Member
Jul 29, 2009
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Not that I think I can get what I need to get out, but I keep going back and forth with the idea of listing it again to see if it would sell. I had it listed for several years 06,07,08 ,09 on an off, and I never got one offer.. but I was trying to get what the appraiser said it was worth,I should have sold it for rock bottom, I was blind to this crash and I am a realtor, I am so ashamed of myself.

I am thinking of seeing if I could break even before I am too far behind with my payments. I would rather get a mod and stay.....but we all know how unpredictable the mods are. My denial is in appeal according to one party and denied according to another. This is my first month not paying, so in 3 days they are going to start reporting me late....... this kills me, don't know why I care so much.

But the fear is back and I have horrid visions of my son finding out somehow, do I fess up and tell him now that this is happening, he is 19 and going to the community college old enough to handle it but according to him we are happy-go-lucky. I was hoping not to have to welcome him to reality, praying really that the mod would come through and he would never have had to know what we went through. But now I think that the mod coming through is a long shot, and a forced short sale or foreclosure is the most likely scenerio if I don't take action. But what action?

Try to sell? If I get lucky enough to find a buyer, and break even, then I have no money to find a place to rent. I won't be able to buy even if I save my credit, because I am self employed and I don't think my adjusted gross is enough for me to buy anything! But If I was lucky enough to find a buyer I could at least save my credit for now.

If I stay for 8 months to a year rent free I can save money but will have destroyed my credit... and I will have to go through the humiliation of the foreclosure..

Feeling really torn.
 

Evan Bedard

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Loan Safe Mortgage
Aug 26, 2007
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Try to sell? If I get lucky enough to find a buyer, and break even, then I have no money to find a place to rent. I won't be able to buy even if I save my credit, because I am self employed and I don't think my adjusted gross is enough for me to buy anything! But If I was lucky enough to find a buyer I could at least save my credit for now.

If I stay for 8 months to a year rent free I can save money but will have destroyed my credit... and I will have to go through the humiliation of the foreclosure..
Hey luvmyhorse,

You are in a tough spot here and have a lot of options to choose from. Of course a loan modification would be the best as you would keep your property with a lower payment and not have to worry about telling your son anything about your current struggles. Listing your home is also a good idea if you are ok with the fact of leaving your neighborhood, especially if you are able to break even form the sale and not have to go through a short sale. A foreclosure or short sale should not even be an option at this point as you are only one month behind. But you will need to make a decision fast as to whether or not you want to pursue a mod or put the home for sale. Both options can easily take many months to complete (as you already know) so you will want to make this decision as soon as you can..
 

luvmyhorse

LoanSafe Member
Jul 29, 2009
506
1
0
Hey luvmyhorse,

You are in a tough spot here and have a lot of options to choose from. Of course a loan modification would be the best as you would keep your property with a lower payment and not have to worry about telling your son anything about your current struggles. Listing your home is also a good idea if you are ok with the fact of leaving your neighborhood, especially if you are able to break even form the sale and not have to go through a short sale. A foreclosure or short sale should not even be an option at this point as you are only one month behind. But you will need to make a decision fast as to whether or not you want to pursue a mod or put the home for sale. Both options can easily take many months to complete (as you already know) so you will want to make this decision as soon as you can..
did 7 months of a trial then got denied.

The trial is now in appeal status, so although I just stopped paying, according to BOFA, I am already 3 months behind...

I don't want to leave, but I can't afford to stay, and I have no faith that a Mod is forthcoming.. for me. I don't know why some people get them, but I am sure I don't earn enough to qualify for my mortgage even at a lower rate... the funny thing is I would love to be able to buy a smaller house, and I would even be willing to buy my way out of this one if the old stated income was still around because I know I could afford 1200 a month, but without a stated income they will say I don't qualify, so I will be stuck renting and paying 12-1400 a month... its all such a ridiculous scam.

So the rich are going to become slumlords and the middle class will pay their mortgages...