What to do after a mortgage charge off?
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What to do after a mortgage charge off?
About 5 years ago after moving to a bigger house to accommodate our growing family, we decided to “ride out” the real estate crash and keep the other property as rental until we could sell it. My husband had a loss of income 2 years ago so we did a loan modification. About 1 1/2 years ago he lost his job so we decided a short sale would be the best option. We were approved and right before closing the loan was sold to. The ne lender refused the short sale and have now put the mortgage in charge off status. How do I move forward? I do not want this house anymore.
Asked on August 30, 2012 under Real Estate Law, Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Since you no longer want the home that you have written about and the current lender refused a short sale addendum agreement, you are at an impasse if you owe more on the loan than what the home is worth. I suggest that you consult with a real estate attorney to see if he or she can possibly get the lender to allow the home to be sold on a short sale basis or accept a deed in lieu of foreclosure.
The problem under the laws of all states in this country is that you cannot force the lender to take back the home from you where the loan is more than what the home is worth.
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