I own a home in Southlake (4000 sf/1 acre/1984 construction with $90k of renovations in 2008) and owe $580k ($464 1st, $116 2nd). Appraised value (late 2008) is $495k (appraiser told to value the house at the number he thought it would actually trade at). I had a major loss of income in late 2008 and have made only 2 payments this year but both lenders are working with me. The 1st approved a short sale for $460k but the buyer found another home (it took over 90 days for approval). The 2nd would be wiped out but the 1st said they will pay a few thousand $$ to them.
Unless I find another buyer (the home is listed but we haven't had many offers lately - my realtor thinks buyers dont want to deal with the short sale situation) my options seem to be: 1) rework my mortgage (1st will do 40 years at 2%, 2nd may do the same), stay in the home for a few months and then rent it out, or 2) let the lenders foreclose.
WRT option 1, I have no liquidity and even after reworking the mortgage to reduce the total payment (P&I, Taxes, Insu from $5,100 down to $3,000) I won't be able to afford the 3 months of payments, I'll owe about $90k more than the home is worth & I'm afraid it could be 20 years before the values improve to where I can break even. However with such favorable financing it seems like I should be able to do something?
WRT option 2, I bought the home to live in but never fully occupied it due to the renovation and then loss of income. I have virtually no liquidity and only a rental condo with about $30k of equity. Do lenders in Texas pursue homeowners for deficiency judgements in my situation?
Any suggestions or comments would be appreciated more than you can believe.
Scott H
texasnnn@hotmail.com
