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loshoshonda

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Getting out of a house payment
Want to sell our house, move into an apartment and start over. We also understand that the housing market is bad. Should we file bankrupt and start over? We almost lost our house last year because my husband lost his job. Now we are having automatic payments taken directly from his check twice a month.

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Do a short sale on the house.... It's when you get your lender to accept a payoff lower than what you owe on the house. Find a buyer first, then negotiate.. Don't file for bk unless it is an absolute last resort. Bk's ruins your credit and ties up a portion of your finances for 5 years, stays on your credit for 10. If your lender refuses a short sale, then use the idea of filing for a bk as leverage. Good luck...

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If you can rent the property out for a few hundred more then what your payments are per month, then you should look into that.

If you don't want to be landlords, you could sell it to an investor "Subject to". That means you get away from the property and the investor pays your loan payments and gets control of the property (he will rent it, or do something like a rent to own or lease option). This will be good for your credit, and if the investor doesn't pay - you get the property back, just make sure the contract says so.

If you owe more then it is worth, and you can't rent it out to at least cover your payments and insurance, then a short sale might be the best option for you.

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