Forclosure

[TL.H]

What is the name of your state? Washington
My husband and I bought a house with an ARM loan in Sept 2003 and would need to refinance after two years and the agreement states we can no pay off the loan early without penalty so we have been told selling is not an option. We are getting divorce and niether of us can afford the mortgage on our own. Is there in any options other than forclosure?

 

[HomeGuru]

What is the name of your state? Washington
My husband and I bought a house with an ARM loan in Sept 2003 and would need to refinance after two years and the agreement states we can no pay off the loan early without penalty so we have been told selling is not an option. We are getting divorce and niether of us can afford the mortgage on our own. Is there in any options other than forclosure?

**A: well, common sense gives you 2 clear options - 1) hold the property and wait until the 2 year period is ove 2) sell the property and pay the prepay.
A long shot but worth checking- contact the lender to see if they would waive the prepay if the same lender was used on a new loan from a Buyer.

 

[earnisek908]

What is the name of your state? Washington
My husband and I bought a house with an ARM loan in Sept 2003 and would need to refinance after two years and the agreement states we can no pay off the loan early without penalty so we have been told selling is not an option. We are getting divorce and niether of us can afford the mortgage on our own. Is there in any options other than forclosure?

Yes.... bankruptcy and foreclosure are not the only options. Go to http://www.ffps.tv/?IBA=earnisekjones check out the site. This is the help that I wish I had when my home was about to go into foreclosure.

 

[mcole]

In addition to what's been posted, here's another thought...

Sell your home as a Lease Option or Contract For Deed, with a 1-2 year term. It would give you some cash now, in the form of Option Consideration or Down Payment. The loan and title would stay in your name until they exercise the Option or fulfill the terms of the Contract. By then you’d be past your prepayment term.

 

[HomeGuru]

In addition to what's been posted, here's another thought...

Sell your home as a Lease Option or Contract For Deed, with a 1-2 year term. It would give you some cash now, in the form of Option Consideration or Down Payment. The loan and title would stay in your name until they exercise the Option or fulfill the terms of the Contract. By then you’d be past your prepayment term.

**A: this idea would not work if the mortgage note contains a due on sale clause that prohibits a lease option or contract sale.

 

[mcole]

**A: this idea would not work if the mortage note contains a due on sale clause that prohibits a lease option or contract sale.

Is this still the case in states that do not require a CFD to be recorded?

Also, what if the Lease Agreement and the Option Agreement are two separate documents? (Wherein, there is no sale until the option is exercised)

Thanks for the input

 

[HomeGuru]

Is this still the case in states that do not require a CFD to be recorded?

**A: recordation is not the key here. The key is the actual execution of the enforceable contract. And it is unwise to not record such a contract.
*******
Also, what if the Lease Agreement and the Option Agreement are two separate documents? (Wherein, there is no sale until the option is exercised)

**A: I refer to my previous post. If you read the clause ( if any) it may state something to the effect of "any sale, lease or transfer of the subject property......."
*******

Thanks for the input

**A: ok.........