I had to relocate to another state last year for employment, (WY), purchased a new home, and put the old one on the market, (in NE). One year later, I am still paying two mortgages and its killing my family financially.
We''ve incurred thousands in subsequent credit card debt since cash has been used to pay for both mortgages.
We feel like there is no help in sight. We can''t lease the property because anyone who could pay the equivalent to the mortgage or even close to it could probably buy.
If we continue to reduce the price to where it does finally sell, we''d have to bring tens of thousands to escrow just to close, (which we don''t have), unless the lender would agree to a short sale but they, (Countrywide), have been totally unsympathetic. We have maintained exceptional credit for many, many years, bought and sold many homes thru them, but I feel like my only way out is to ask them to accept a deed in lieu. I know it will seriously damage our credit but what other choice do we have??
Also wondering if they could actually garnish my wages for the deficiency and if I have any state law deficiency protection since its not my primary residence anymore?
1 Answer from Attorneys
Re: Real Estate
You are in a very tough spot. You are not alone, there are many people in the same situation. Countrywide is not likely to accept a deed in lieu or a short sale unless you are in default and have missed several payments. If that happens, it will have an adverse effect on your credit. It is unfortunate that lenders won't cooperate more with borrowers like yourself who are struggling to avoid default. Options to explore:
1. Will your employer offer some assistance?
2. Would it be easier to sell your Wyoming home? If so, would it work better for you financially to move back to Nebraska even if it involves a cut in salary?
3. You need to stop borrowing on your credit cards to keep treading water; it is a bubble that will burst sooner or later and leave you in an even worse situation than you are in now. You need to make some hard decisions.
4. Yes, Countrywide could garnish your wages to satisfy a deficiency judgment; it only requires a few additional steps to get there than if you were still living in Nebraska.
5. One possibility, since you have taken care to preserve your credit; see if you can obtain a blanket mortgage from your current lender which would cover both homes and your credit card debt. It may be far more affordable and give you more time to find a buyer.