Settling debt with Mortgage Company
Date: Sun, 08/16/2009 - 07:36
Have any of you ever heard of a Mortgge Company settling with a customer for the note on the house and the difference between what is owed and the appraised value?
I owe $140k on my Town Home in AZ and comparables are being listed around $95k. I would like to have the place appraised and offer the deed to the house and the difference between what I owe and what it's value is ($45k).
Anyone know if mortgage companies have settled in this fashion before? It seems logical to me that they would prefer this over a Foreclosure and since they have made money off of the interest I've been paying for the last 4 years shouldn't hit my credit.
I owe $140k on my Town Home in AZ and comparables are being listed around $95k. I would like to have the place appraised and offer the deed to the house and the difference between what I owe and what it's value is ($45k).
Anyone know if mortgage companies have settled in this fashion before? It seems logical to me that they would prefer this over a Foreclosure and since they have made money off of the interest I've been paying for the last 4 years shouldn't hit my credit.
I think you are here talking about short sales wherein you'd be
I think you are here talking about short sales wherein you'd be responsible for paying the remaining amount on the loan even after surrendering the property to the lender. Yes, you can do that. However, it'd still have an adverse affect on the credit score but the damage would be lesser than that of foreclosure's.
Another option that you can consider is deed-in-lieu. The deed-in-lieu agreement would free you from the responsibility of compensating the lender for the outstanding amount. But the process may lower your score by 200 to 250 points.
