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Shortly before the plague, my husband accepted a job that required us to leave the state; however, we have not yet received it because of the phone service. My husband and I have two small children. Because of the telephone service, my in-laws used to watch our children at home and usually stay for a few days.
My husband and I asked his parents to stay with us as soon as we returned. In principle this is a great program for all concerned: take care of the children for free, reduce expenses for them and we all enjoy each other’s company.
The problem is: my mother-in-law is $ 50K underwater in their hometown. The house has a water inlet and foundation problems that cost almost $ 100,000, at best. My mother-in-law is a very polite man and he doesn’t think walking right is what he did. He thinks continuing to pay the bills is the best plan, even if they don’t live in the house.
Short-term sales, even if the buyer agrees to the terms, will be detrimental to all their savings. My husband feels that their trip and receiving the award of capture is the best choice. They will stay with us and will never get the payment that prevents them.
In addition, my husband is the only one who is named as the executor of the property. My husband realized that whenever his father died (he was 71 years old), that home would be his business to deal with. Should my in-laws continue to pay or leave? Are there other options that we should consider?
Your letter is an important reminder that even when home prices rise sharply on record, many Americans continue to owe more on mortgages than their homes, also known as “being underwater” at home.
Millions of Americans have found themselves in this position as a result of the debt crisis that led to the Great Depression. But even though home prices have risen – in many cases to new developments – some 1.6 million homes are still in volatility as of the third quarter of 2020, according to recent data from CoreLogic
This represents about 3% of all mortgages across the country.
Walking away from the underwater house is a bad way, no matter which path you take. And almost any financial expert would advise your family to avoid this at all costs.
For starters, removing household items completely damages the owner’s value proposition, and they remain in a person’s financial portfolio for up to seven years. You may be wondering, what kind of difference is it? So what if your new lifestyle doesn’t work? Your family and in-laws used to spend a little time together – this was different from living together permanently.
If your in-laws decide that they need their own place, they may have trouble qualifying for the lease with a lower price to pay after-school. Are you and your spouse ready to be assured of such a situation?
Deviating people is not a withdrawal from a free card. You write the possibility of following a short sale because it will hurt your in-laws, but that is the only thing that can happen with a dispute.
“Depending on the laws in their state, the lender can stop the loan, sell the property, and then come after the parents on the loss penalty – the difference between the sale price and what is owed with the tax, insurance, found the funds, ”said Rick Sharga, a veteran in the mortgage industry and vice president of data management at RealtyTrac.
Don’t miss out: I’m planning to retire soon. Are we going to sell our house when the price is too high – and rent for two years?
Federal law stipulates that retirement savings in corporate retirement support accounts such as 401 (k) s are not exempt from liability from creditors in the case of liability. Some states offer similar rewards to direct retirement accounts.
There is also a consideration of morality and morality. Your in-laws have signed an agreement with the lender, so it is understandable that your in-laws feel the responsibility to hold the end of the transaction. Furthermore, research has shown that removing the law can drown the value of nearby real estate.
What to do instead? Well, for starters, all of you should check whether the in-laws are worthy of any kind of help to make the necessary repairs to their home to bring it to the state to be sold. If one of your in-laws is a veteran, they may be eligible for assistance through Operation Homefront. Other resources that can be explored for financial assistance include the Association of Local Governments on Aging and the Environment for Humanity.
I also think you should reconsider the short sale, to see if your in-laws’ lenders will accept the lower interest rate on the mortgage. Civil servants can still follow your in-laws for the remainder of the loan after the sale – although it depends on the state – but as I said, this is also true of my contract.
“Another option could be a ‘dispute rather than a coup d’état,’ so they will hand over the house to the bank without following the bankruptcy process, perhaps because the bank promises to forgive any deficit,” said Eric Dunn, director of litigation. a in the National Housing Act.
A short sale or dispute instead may affect your in-laws ’loans, but it will still be less difficult than the blow they will take from taking power. And with every option, you need a service to accept.