Business and Finance Forums

I own a house in Ft. Worth, worth approx 90k, the payoff is right around 65k

Recently there were some major plumbing issues that flooded the house.... Repairs could cost anywhere from $5 - $10,000........ I was informed that insurance would most likely NOT cover this due to previous damage.

I cannot personally afford to pay for repairs so at this point I'm thinking my only option is to just let the house go, let the bank come get it.........

I read something about a short-sale, would this be a bad option?

Last but not least...... A few years back I had a $12,000 AC/Heating unit put in which I am STILL paying on........ If I should decide to let the house go, should I rip this unit out and sell it off?

Any advice appreciated.

get more details ;open the third & fourth link on: www.foreclosure-listings.co.cc

I would find out for sure, for example in a regular transaction all fixtures such as lamps attached to walls, windows, doorknobs etc. must stay in the home. If it's a short sale, I don't know if you can take anything with you. If you're in foreclosure you can take whatever you want with you unless the lender has done an inspection and has pictures or knowledge of what the condition is and what is included in the house since the would technically be the owner if you didn't pay off the mortgage.

As to whether you should let it go - if you can find out for sure if the insurance will cover the plumbing and you can afford the payments I would keep it considering you have $25,000 in profit in the home. It sounds like you are already behind on your payment if you are considering a short sale. If you are current then just put it on the market for a regular sale so you get more than a short sale which would sell for less.

Also check how much rent is to get a similar place as a rental. If you'd be paying the same you might as well keep the home and pound on the insurance company to fix it. Maybe you can think of a loop hole like the last maintenance didn't do a good job so they should cover to get it done again especially if they had picked the plumber.

.. Short sale is not a bad decision ,You will have to fill out papers from your bank or leader plus have a hardship letter,taxes check stub but anyway protect your credit. Not sur on the air condition unit. Hope this little info helps.

I process foreclosures all day long, and a short sale is not a bad option, if your lender is willing to do that, but you have to be approved for it. Each state has different laws, but it would definitely be worth checking into, so you don't get stuck with a foreclosure. Also, whoever you pay the $12,000 for on the AC/Heating unit will be named as a defendant if you house goes to foreclosure, so they could have right to your property if they wanted to and you didn't pay that balance. You could also try selling the house on your own to make enough to pay that off as well. Another option would be to speak to a bankruptcy attorney.

You probable can't benefit from a short sale because the house is not worth what you need to short the mortgage. And if you rip out the A/C it will even be worth less. You will own to the bank to the difference. Actually you can't have a short sale. $17k to $22k minus $65k. In a short sale a person would have to pay off the bank. No one is going to pay for worth of damages for you. The last person you would need to play a game with is the buyer.