Legal Question in Real Estate Law in Nevada
Avoiding Foreclosure
Prior to sub-prime debacle, we purchased a new home thinking we could re-fi our old one & rent it out. The re-fi fell through. We are now stuck with the old home valued $30k less than owed, extremely slow market, and ARM increases every 6 months. Our options seem to be a $30k loan from retirement to reduce asking $ in the hope of selling; foreclosure; or renting for 1/3 of the mortgage payment. We do not have enough reserves to offset significant renter damages. If we choose foreclosure, what are the repercussions, and will our new home be lost as well? Any other solutions? Both homes are homesteaded if that is a factor. Thank you.
2 Answers from Attorneys
Re: Avoiding Foreclosure
Your lender may allow you to make a short sale. You could speak with your lender about refinance options and/or a work out plan for your arrearages. Your lender might also consider a deed in lieu of foreclosure. If it is foreclosed, your credit will be severely damaged.
Re: Avoiding Foreclosure
I would suggest exploring a deed in lieu of foreclosure, offered in full settlement. If the lender agrees, it assumes selling expenses and carrying charges, without any foreclosure costs or delays. Your attorney can advise further.
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