What if we have to give it back?

[wendy]

Will they work payments out with us so we can continue the credit rating but let them attempt at sale? In our state the realtors won't even list these and I've had ours on the market for over a year. We are upside down over 15,000 now and even though it's a 1996, no one wants them out here. I can't rent it out as it's in a park, and I can't sell it. So what can I do without ruining my debt? Stay there for 30 years? Can anyone give any advice on what the ramifications would be?

[Roy Bonney]

Basically, there is no giving it back. It will be a repossesssion, with all the ramifications connected to it. Once the home is sold, the lender can come to you for the deficiency balance, that left owning after the home was sold, and all costs of sale paid. This should be avoided if there is any way possible.

[wendy]

Don't I wish it was.

[Mac]

If you are in Oregon, and this is a first mortgage, check state law very carefully. It is my understanding that a first mortgage can be abandoned - not that it won't zap your credit - but the deficiency (sale-cost of sale-balance) can't be collected. However, if this is a refinance, the deficiency CAN be collected - I think the presumption is that you knew what you were doing, at that point. Find a financial advisor without an axe to grind or product to sell, or talk to a real estate attorney. If it were my situation, and I could afford it, I would just live there until I could make up the difference, then sell it and be done with it. I would rather protect my credit.
My two cents...

[wendy]

Hmmm...I'll have to look into that.

[wendy]

what if i'm not the one that refinanced it but purchased it after the first owner did?

[Mac]

If it is YOUR first mortgage on the unit, my guess is that you can walk. If you assumed the mortgage, I am not sure. If you do walk, though, it will no doubt do an extreme hit on your credit. So I would make it the option of very last resort, and think about what my goals - financially and otherwise - are over the the 7-10 years that my credit was in the toilet.
Best of luck! mac

[wendy]

Thank you Mac. The home was on an assumed loan when we purchased. I just wish there was the option of renting or something. It kills me to think how many of these are going vacant and abandoned because the parks won't let you rent. So many people that thought these were great starter homes are now stuck in them forever because they can't get out.

I know that I will have 7-10 years of bad credit if I let this go back. In all honesty, I don't see any other choice. I've tried everything for over a year. Interest rates on these are too high compared to conventional homes and let alone the park rent is superceding the cost of the home.

I appreciate all the help everyone has provided. I really do. We're looking at giving it back and filing a b/r. No choice. But anguished because we've worked so hard to accomplish so much and have perfect credit. All for one mistake a few years back getting into this home to start with.

Now the question is, after 10 years will creditors see it on the credit report at all? Hmmm...now that's the new dilemma.