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Housing market question: short sale vs loan modification vs deed in lieu of foreclosure?

Acerbic asked:

I simply want out of my house. I am upside down in my mortgage b/c my neighborhood has become a rent neighborhood (houses have become section 8 housing, and property value has plummeted). I cannot sell this house, not with the neighborhood the way it is. Which option is best? Short sale, loan modification, deed in lieu of foreclosure? We just want out. We did not anticipate the neighborhood turning into a ghetto.
Asked on: 2012-12-25 21:43:47

3 Comments

  1. Steve D says:

    If you can afford the payments on the current loan, the bank will not allow you to short sell (yes, they have final approval). That leaves a mod which you may or may not qualify for since you are underwater or a foreclosure/deed in lieu, which means you can forget buying for a few years.

  2. Rquinn says:

    Have you contacted an agent about what to do?

    Just a word of advice–if your house forecloses and does not sell this year, you will be charged $500 of your tax return every year until it DOES sell. This happened to my sister this year and she was completely unaware of the charge until someone called to collect the money from her.

  3. Shane says:

    Foreclosure is the system by which a party who has loaned money secured by a mortgage or deed of trust on real property (or has an unpaid judgment), requires sale of the real property to recover the money due, unpaid interest, plus the costs of foreclosure, when the debtor fails to make payment. However, if you need some information about foreclosure attorney boston you can visit this site

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