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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33708
Experience:  15 years real estate, Realtor. Landlord 26 years
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I have a home in MS that I owe more it is supposedly worth.

Customer Question

I have a home in MS that I owe more for than it is supposedly worth. I accepted a better job opportunity back in Nashville, TN and had to find a rental home rather quickly in order to start my new position. I could not afford to pay a house payment and rent, so I have not paid my mortgage in nearly a year. Chase has still not foreclosed on the property. I want to be able to buy a home here, but I know my credit has been hurt by this situation. Is there anything I can do? A short sale will really not benefit me, as I cannot afford to pay a difference in the amount owed and the amount it would sell for. I've asked Chase to do a deed in lieu of foreclosure also. My husband did not work for the first few months after we moved to Nashville, due to the fact that he was caring for my elderly father who lives with us. He also had some medical problems that kept him from work earlier this year.
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Barrister replied 5 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question.

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What was their response to your deed in lieu request?

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thanks

Barrister

Expert:  Barrister replied 5 months ago.

There may be a bit of confusion about what a short sale is and what it does. With a short sale, the lender agrees to allow the owner to sell the house for less than what is owed. As long as this is a "non-recourse" short sale, which most are, then the lender can't come after the borrower for any deficiency.. That is kind of the point of a short sale... to get the borrower out of the house that they can't afford to keep without the bank having to go through a formal foreclosure.

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So if you didn't get any traction with a deed in lieu request, the next step is to ask for a non-recourse short sale and explain that you aren't going to pay the mortgage again and are prepared to file bankruptcy if they foreclose and try to sue you.

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I would also go ahead and mail them the keys along with a letter stating that you are abandoning the property so they can retake possession and secure it as well as monitor and maintain the exterior so it doesn't get vandalized.

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But as for your direct question....no, you can't force them to foreclose if they don't want to... However, there is nothing that would prevent you from renting the house out to someone and earning income from it until they do foreclose or work something out with you. If it is habitable, there is no reason for it to just sit empty until the bank decides what to do...

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thanks

Barrister

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