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I’m Active Duty Assigned to a New Post With a House I Can’t Sell. – Robert

“Dear Steve,

You answered a similar question from an active duty member regarding mortgage relief. My situation is as follows. I am active duty, bought a house while on active duty in Colorado Springs. Lived there no problem however I have been ordered to a new post. I have tried to sell the house, but like many, my house is worth less than what it is worth. I have tried to rent it out and wait for the value to rise again. However renting is becoming difficult, no one is willing to pay what I owe for the mortgage. like I mentioned I am at my new duty assignment and I am paying rent here, so essentially I am paying two mortgages and it is getting tough. I am afraid to just let the house go. My credit would suffer and I want to be able to purchase another house in the near future.

What are my options? Open to anything!

Robert”

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The Answer

Dear Robert,

Air Force?

I’m afraid your options are limited because of the drop in value and the fact this is non-owner occupied house. The first step would be to contact a local HUD Housing Counselor and see if your specific lender offers any modification programs that make sense for you.

If that does not work out for you then you need to start thinking about a strategic default where you hand the house back to the bank and go bankrupt to discharge your remaining obligation on that first home.

Right about now you are getting concerned about how that will impact your status in the military. In fact your clearance is more likely to suffer because you are maxed out than if you decide to pursue bankruptcy, a legal option, to remedy a situation beyond your control. For more information on this, read this article.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

Im Active Duty Assigned to a New Post With a House I Cant Sell.   Robert
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I'm Active Duty Assigned to a New Post With a House I Can't Sell. - Robert by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Andy Faria

    If you have had the property on the market for at least ninety days, you want to ask the lender about a deed-in-lieu of foreclosure. This is essentially handing the keys back to the lender.

    Before most lenders will consider a deed-in-lieu, they want to see that you have tried to sell the home for a certain period of time (usually 90 days), they may even recommend you lower the price and offer the home as a short sale for another period of time, before they agree to take the property back.

    Its never a guarantee but it’s worth a try.

  • http://northeast-properties.com Andy Faria

    If you have had the property on the market for at least ninety days, you want to ask the lender about a deed-in-lieu of foreclosure. This is essentially handing the keys back to the lender.

    Before most lenders will consider a deed-in-lieu, they want to see that you have tried to sell the home for a certain period of time (usually 90 days), they may even recommend you lower the price and offer the home as a short sale for another period of time, before they agree to take the property back.

    Its never a guarantee but it’s worth a try.

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