We live in Michigan. Our son-in-law had to take a job as an elementary school principal in NC because he could not find a job here. He moved to NC in August and rented a house there. His family is living in their house in MI that has first and second mortgages that are more than the current value of the house. Payments on both mortgages are currently up to date, no payments have been missed. Our daughter is a director of a child care center in MI. She will have to quit her job to move to NC. They will not be able to maintain the mortgage payment on the house in MI after she moves to NC. The housing market in MI is very depressed. If they could sell their house, it would be for less than they owe on the mortgages. It seems that their only option is to walk away and let the house go back to the lenders. Is there a better option?
Options are scarce. They can live apart and pay the bills as they have been until the house sells, or talk to the lender about accepting a lesser sales price to release the home, with the deficit being made up on a new loan. Any alternative involves defaulting on the loan and suffering the repercussions of bad credit for the next seven years and potentially beyond.
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Options are scarce. They can live apart and pay the bills as they have been until the house sells, or talk to the lender about accepting a lesser sales price to release the home, with the deficit being made up on a new loan. Any alternative involves defaulting on the loan and suffering the repercussions of bad credit for the next seven years and potentially beyond.
