Should I Foreclose?
Question: I’m relocating soon and I’m having trouble selling my house in NJ. I have it listed for less then I purchased it for and still have not gotten any reasonable offers.
Question: At what point do I consider foreclosure vs losing lots of money selling. IOW, which is better, owing $10,000 when I sell or just stop paying the payments and foreclose on it, even if I get bad credit as a result?
How much money does it cost you to foreclose? Do you have to go bankrupt?
Answer: Firstly, I think you will have an uphill battle suing a broker, and I think that course of action is somewhat ethically-challenged.
Regarding foreclosure, you don’t want to go through it. You MIGHT be able to talk to the bank, make a deal with them, depending on the value of the property. $10,000 is not that bad a loan loss for them on a $150,000 loan. The bank could sit down and negotiate with you, wind up with a clean, saleable house on THIER timetable, or go through the foreclosure process which will cost money, time and leave YOU with a $10,000 defieciency judgment. First try to rent out the property to cover the mortgage.. I assume you cann’t cover it. If you chose to just give up don’t just stop making your payments call your bank and tell them about your situation and you can usually just do a deed in leu of foreclosure. This is better for your credit and also they usually don’t take a defiency judgement on to you either.. In fact tell they that you will deed it back over to them only if they don’t go for a deifiency judgement. They usually will do this. If they say no try to talk to someone else there..
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