How to Dump your house

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You have bad credit, are a minority, have possibly low income, yet you were able to get a loan. You were probably in a desperate situation, possibly a divorce or a bankruptcy and there were not a lot of options for you, or so you were told by the lenders you contacted. They looked at your situation and convinced you to agree with loan terms that were not fair. You probably got a 2 year fixed loan, with promises of refinancing after two years. Most likely when the two years are up you will not be able to refinance. They will say that your credit is not good, although it is better than when you got the loan they approved for you, or they will say that you do not have enough equity in the house.They will give you a list of reasons why you cannot refinance. Pretty soon your terms will change, you will be faced with an adjustable loan, you will not be able to afford the payments and no one will work with you. Here is what you can do before you get to that situation.

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Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

Determination

Step1

Do not wait until the terms of your loan change. Begin trying to change your living situation. Put your home for sale, and we all know that it will not sell right away, it could be a year before you can sell it but this is a necessary step for dumping your house.

Step2

With your house on the market, start looking for a new house to buy. Just because you can not refinance does not mean that you can not buy. You may be surprised. Remember, that the predatory lenders are playing a game with you and they think that you do not have any options. Continue making payments on your house until you are able to change your living situation. The important thing is to not ruin your credit before you have a chance to buy a new house or rent a new house.

Step3

If you do not have a second mortgage on your house then move into a new home that you either buy or rent. Do not make any more payments on your old house. Let the bank take it. Do not spend your savings paying for a house that you will eventually lose because the system will not work with you or for you. Move, find a place to rent or to buy before you lose your house. Take action BEFORE your credit is ruined.

Tips & Warnings

If you have a second mortgage this will not work for you. Do this at your own risk. I know people who have done this successfully.
You may want to consult with a lawyer, all situations are different.

Comments

expertelement said

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on 3/29/2008 Unless you have been in a situation where you are faced with the decision to dump your house, you really do not know what you are talking about. You really do not know that sometimes it is better to ruin your credit than to empty your savings account paying for a house you cannot afford and will be taken from you anyways. Unless you have had a bankruptcy yourself or have had serious credit issues, you really do not know how long your credit will be affected. Weather it is 10 years or not , only the people who have been in that situation know.

adecesare said

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on 3/29/2008 This is the worst advice I've ever heard. It's never a good idea to willingly let a lender foreclose on your house. It could destroy your credit for the next ten years!

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