What to do after a mortgage charge off?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption