upside down how do I wk with the bank owe149,000 value 23,000?

Question

Hello my name is Myrtle B. I live in metro Atlanta Ga. I had my Re. lic. for over 20 years active. I have never done realestate full time.I had young children and my forcus was on my family .4 months ago I went inactive. I just found biggerpockets and I am ready to learn and move forward. The fire has been ignited and it is getting hot I am ready to learn and do.

Account Closed · Answer

I am curious how one even gets this far upside down. Seems like you would have to try.

Jacob Sampson · Answer

I agree with NA Beard, your situation is just this side of ideal.

Myrtle Blackman · Answer

Not behind in monthly payments. however the last 2 years our taxes were under $25.00 as per tax value  for the year. The house needs some work and there is a mold problem. On the outside it looks good but there is mold in 2 rooms.

Richard Scholtz · Answer

MINOR CAUTION TO CHECK OUT FIRST...

Please check the rules on deficiency balances???

In Washington for example - A Short Sale is the kiss of death....as a foreclosure does not allow for a deficiency balance, but lenders can come after you for whatever was "forgiven" in the short sale years afterwards.

People trying to do the "right thing' worked hard at selling their home and worked with the realtor and bank to get it sold as a short sale. Thinking they were done they moved on.  Three years later a collection agency is hounding them as the bank sold the deficiency balance for 10 cents on the dollar and now a collection agency can and will collect.

That cannot happen on the foreclosure here in WA ....so my advice at times is quit paying the mortgage and save the payments to move.....in year you have to ,....but you are no worse off than if you did a short sale.....  Check your local rules about deficiency balances.

Jamie Kennedy · Answer

I agree with J Beard.  I would offer the bank a Deed in Lieu of foreclosure.  I did one once in CA when the market tanked and I had to move for a job, house would not sell.  It did not scar my credit at all.

If you attempt to sell the property, bank might consider a short sell, but those are hard to get and....you are severely short!

If you can explain extenuating circumstances, the bank should accept a deed in lieu and you can walk away with only your money in, as your loss and call it ....education, and start over.

Every success out there has had to fail first.  They just keep getting back up and don't give up!

Jeff B. · Answer

Do we understand  you correctly:

• You owe $149,000 when the fair market value is $23,000?

Will not ask how this occurred to avoid embarrassment, but you're up a creek w/o a paddle, and IMO, you ought to be planning on a Deed in Lieu process to surrender the property and move out.