‘The Big Move’ is a MarketWatch column that looks at services and real estate, from looking for a new home to apply for a home loan.
Do you have a question about buying or selling a home? Want to know where your next move should be? Email Jacob Passy to TheBigMove@marketwatch.com.
Shortly before the epidemic, my husband accepted an assignment that required us to leave the district; however, we do not have to go so far because of telework. My husband and I have two small children. Thanks to our telephone work, the mother-in-law’s parents have been watching our children in our homes and often staying for several days at a time.
My husband and I asked his parents to stay with us, as soon as we moved. In this sense it is a good strategy for all involved: free child care, reducing costs for them and we all enjoy each other’s friendship.
The problem is that my contract is $ 50K under water in their town house. The family has a water supply and basic necessities that make it worth only $ 100,000, well. My father-in-law is a good man at heart and could rarely do any harm to anyone. He thinks that paying off a mortgage is the best policy, even if they do not live at home.
A short sale, even if the buyer is willing to deal with the problems, can be detrimental to whatever money they have. My husband thinks that going for a walk with a credit card is the best option. They could live with us and no longer have to pay the mortgage.
Besides, my husband is the only child and heir named heir. My husband realizes that whenever his father dies (at the age of 71), that house will be his career. Should the father-in-law continue to pay or leave? Are there other options we should consider?
Your letter is a valuable reminder that even in the face of rising home prices, many Americans continue to owe more than their basic home, also known as “home”. to be underwater “in the house.
Millions of Americans have found themselves in this situation after a subprime housing crisis that has caused huge economic growth. But even though home prices have risen – in many cases upwards – another 1.6 million homes are still in a state of disrepair since the third quarter of 2020, according to a press release. the latest available from CoreLogic
That represents about 3% of all homes purchased nationwide.
Walking away from an underwater house is a vague step, no matter how you cut it. And almost any financial expert can advise your family to avoid it at all costs.
For starters, pre-closure severely damages a landlord’s debt, and stays in a person’s mortgage file for seven years. You can imagine, what difference does it make? What if your new living arrangements are not working? Your family and your mother-in-law have spent a lot of time together – very different from living together forever.
If your in-laws decide they need a place to live, they may have a problem qualifying for rent with the low credit score they may have after hearing. Are you and your husband willing to be guaranteed in such a situation?
The announcement is not from a free prison card. He wrote down the possibility of pursuing a short term because it could hurt his savings, but that is exactly what can happen with theft.
“According to the laws of their country, a loan can cover debt, sell property and follow the parents for a default judgment – the difference between the sale price and what was owed by the debt and taxes, insurance, penalties and fees, ”Said Rick Sharga, director of the real estate industry and vice president of real estate firms RealtyTrac
Don’t miss out: I’m planning to retire soon. Should we sell our house at a higher price – with a two-year rent?
State law states that retirement benefits in company-sponsored accounts such as 401 (k) are not exempt from credit by creditors in the event of a deficit judgment. Some countries extend similar procedures to retirement accounts.
There are also ethical and ethical issues. Your mother-in-law has signed an agreement with the mortgage, so it is only natural that your in-laws feel obligated to hold their contract. Also, research shows that forethought can deepen the value of nearby family property.
What to do differently? First and foremost, all of you should check that your in-laws are qualified for any kind of assistance to make the necessary adjustments in their home to bring them to market. If one of your parents is in the military, they may be eligible for assistance through Operation Homefront. Other resources they can research for financial assistance include the National Association for Local Aging and Human Settlements.
I also think you should consider a short sale, and see if your mom and dad will agree to a reduced amount to pay off the mortgage. Employees can still track your interest for the rest of the loan after the sale – however according to the government – but as I said, so do the forecasts.
“Another option could be a ‘permit in the area of theft,’ in which they could hand over a house to the bank without being arrested, possibly for the sake of the bank’s promise to end the scam. whatever, “said Eric Dunn, director of litigation for the National Housing Law Project.
A short sale or a certificate in its place may affect your mother-in-law’s debt, but it may still be lower than the rate they can take from foresight. And with any option, you need the servicer to match.