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Home in forclosure- What are my best options?

Date: Mon, 04/19/2010 - 07:17

Submitted by Connie Holboy
on Mon, 04/19/2010 - 07:17

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Total Replies: 2


My boyfriend's home is in forclosure. He's a contractor and had client go bankrupt on him and put him in a finacial spiral. He's been fighting with his mortgage company for almost a year now (trying to get a loan modification) and really getting the run-around. He does make pretty good money, but he's self-employed and it's hard to get re-financed. He has a bunch of equity in the place, probably 200,000. He has substancial credit card debt. I have a couple of questions.

1. His credit is most likely shot. So...should he file Bankruptcy? (from what I've read-Chapt 13) And if so...can it help if his house is supposed to be up for auction (I guess) in two weeks. I don't know how long it takes to get that all going.

2. I have money in my 401k that I can get out (as a loan and the payment would come out of my paycheck) to bail him out. If I do that, he says he would sign the house over to me. He's so far behind--it would be, like 20,000. I would guess that it's not as easy as that (signing the house over). Is this a reasonable option?


If he wants to avoid the property being foreclosed (as it would have negative effects on one's credit) he can still consider deed-in-lieu or short-sale (these two would also affect his credit but the damage would be much less than that of foreclosure or bankruptcy). Bankruptcy should be considered as the last option (we don't know here what his credit card debt situation is).

Next, he can turn the property over to your name and then you can get it refinanced, which would make you responsible for the mortgage (only transferring the property won't free him from the liability of the mortgage). However, this option would depend greatly upon your score and financial credibility.


lrhall41

Submitted by SC on Mon, 04/19/2010 - 23:16

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