sillychick82 Posted August 20, 2008 Posted August 20, 2008 Long story short after 14 years of marriage I want out. There has been things leading up to this but my husband isn't ready still. He has gone from let's seperate, to divorce, to moving out, to moving back in to try to make things work, back to divorce and he's getting a place in the next few weeks. Fine it's over. We have a mediation appointment for next week. But we are trying to figure out what to do with the house. Neither one of us want it. We were looking into a short sale on it. But I don't want to be living somewhere he pays for 1/2 and can still come and go as he pleases. I would like my own private space and also to get the kids settled with school starting soon. I was thinking about asking if he just wants to foreclose on it since the short sale will hurt our credit anyways.
Mr. Lucky Posted August 20, 2008 Posted August 20, 2008 I was thinking about asking if he just wants to foreclose on it since the short sale will hurt our credit anyways. It all depends on what your future plans are. A foreclosure will stay on your credit history for 7 years and even then you will have to petition the 3 credit reporting agencies to have it removed. A short sale is also bad, just not quite as bad. Here's an article that discusses both: http://homebuying.about.com/od/4closureshortsales/qt/060907SScredit.htm One interesting quote is: "The effect on a consumer's credit report -- foreclosure vs. short sale -- is the difference between being hit by a train or a bus," Not much difference ... Mr. Lucky
redfathom Posted August 20, 2008 Posted August 20, 2008 I read that a shortsale will knock your credit down 100 points and a foreclosure 300 points. Have you thought about asking your STBXH to buy you out of the loan? Maybe you can have your mortgage company renegoticate your terms, and get a 2nd in his name only...of course he has to agree to pay of they Sorry that you are bieng hit with so many things at once.
Mr. Lucky Posted August 20, 2008 Posted August 20, 2008 Have you thought about asking your STBXH to buy you out of the loan? Why would he buy her out if the loan is more than the house is worth? Also, how do you get a second if there's no LTV to loan on? If there's no equity, there's nothing to split except either the unsecured obligation or the pain of having your credit dinged... Mr. Lucky
flower_fairy11 Posted August 21, 2008 Posted August 21, 2008 Same type of thing happened with me & my husband and our house. We went to short-sale, and the bank dragged their feet until it forclosed. The foreclosure hasn't been as bad as everyone thinks it would be. I got a personal loan, but got turned down for a car loan, they said it was because of the economy and not the foreclosure... my sis has a 900+ credit score and SHE couldn't even get a $2000 loan. I say let it foreclose. Set yourself up beforehand, like buy a new car, new t.v. credit cards, etc if u want them beforehand (if you can get it in this economy) and then sell everything you possibly can from inside the house. Me & 2 other people I know left things in the house (chandeliers, lead-glass doors and windows, etc.) because morally, it is the right thing to do... but the people that came in to "clean sweep" the place after the foreclosure took EVERYTHING from lighting fixtures to cabninets and doors, appliances, bathroom fixtures, even door knobs and sold them to local salvage yards, antique collectors and on craigslist... In this economy with a 56% foreclosure rate, you won't get hurt by it.
Mr. Lucky Posted August 21, 2008 Posted August 21, 2008 but the people that came in to "clean sweep" the place after the foreclosure took EVERYTHING from lighting fixtures to cabninets and doors, appliances, bathroom fixtures, even door knobs and sold them to local salvage yards, antique collectors and on craigslist... In this economy with a 56% foreclosure rate, you won't get hurt by it. I hope you're not advocating this. The OP doesn't need to add that kind of Karma to her current situation... Mr. Lucky
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