What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?

On 07/05/2019 06:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?



I've heard K-Y Jelly eases the pain...

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

In alt.home.repair, on Fri, 5 Jul 2019 20:00:17 -0500, Dean Hoffman
wrote:

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

In micky writes:

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

Depends whether it's a "non recourse" State.

In some areas, the mortgage holder can _only_ go
after the property, which gives the "owner" [a]
the option of calling the bank up and saying
"I'm walking out; the keys are under the mat".

This was a common event in the years following
the "great recession" of a decade ago.

Look up the term "jingle mail".

In a "recourse" State, the lender can go after
other resources but might, or might not.

[a] term used a bit loosely given there's a
mortgage and who actually "owns" the land
is a bit grey, but you know what I mean..



--
__________________________________________________ ___
Knowledge may be power, but communications is the key

[to foil spammers, my address has been double rot-13 encoded]

micky wrote

What is one to do if he wants to sell real estate, but he bought
it not long ago, prices have gone down since he bought it, he
has no other substantial assets, and the highest amount he
can sell it for is not enough to pay off the mortgage?

Wait for the market to improve so that it least pays off the mortgage.

Or if you are in a non recourse state, just hand back the keys.

On 7/5/2019 9:11 PM, micky wrote:
In alt.home.repair, on Fri, 5 Jul 2019 20:00:17 -0500, Dean Hoffman
wrote:

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.


Does he have a place to go?

One thing he can do is notify the bank that he is going to walk away. A
relative did that a couple of years ago and they worked with him to
avoid a lot of crap.

A lawyer may help if bankruptcy is an option.

On Fri, 05 Jul 2019 21:11:42 -0400, micky
wrote:

In alt.home.repair, on Fri, 5 Jul 2019 20:00:17 -0500, Dean Hoffman
wrote:

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

You must live in a depressed place if real estate is down there. Must
be up north somewhere. We aren't quite 2004 (market) here but that
seems to be not that far off. Even mobile homes that were stuck at
$80k through the boom and bust are $125k now.

On Fri, 05 Jul 2019 21:11:42 -0400, micky
wrote:

In alt.home.repair, on Fri, 5 Jul 2019 20:00:17 -0500, Dean Hoffman
wrote:

On 7/5/19 7:43 PM, micky wrote:
What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?


I suppose decide if it's want to sell or need to sell. Maybe hold
and hope
if it's the former. Any descendants?

No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.


Why in heaven's name did he buy it in the first place? Speculation?
Investment???
No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.
He's screwed. He's lost his "investment", regardless how he ends up
solving the problem.

On Fri, 05 Jul 2019 20:43:15 -0400, micky
wrote:

What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?

Sounds like another Mikey screw-up.

In article ,
says...

You must live in a depressed place if real estate is down there. Must
be up north somewhere. We aren't quite 2004 (market) here but that
seems to be not that far off. Even mobile homes that were stuck at
$80k through the boom and bust are $125k now.



It is up on the average here in NC.

In alt.home.repair, on Sat, 6 Jul 2019 01:55:56 +0000 (UTC), danny
burstein wrote:

In micky writes:

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

Depends whether it's a "non recourse" State.

In some areas, the mortgage holder can _only_ go
after the property, which gives the "owner" [a]
the option of calling the bank up and saying
"I'm walking out; the keys are under the mat".

This was a common event in the years following
the "great recession" of a decade ago.

Look up the term "jingle mail".

I'll do that.


In a "recourse" State, the lender can go after
other resources but might, or might not.

[a] term used a bit loosely given there's a
mortgage and who actually "owns" the land
is a bit grey, but you know what I mean..

I do know what you mean. When I first applied for a mortgage 35 years
ago, the bank mortage company agent know all 30+ questions by heart and
he must have found his job unsatisfying, because he started off saying
"Look, were going to own this house for the next 30 years so this is
what you have to do." I think it's clear in Maryland that the owner
owns it (and it can take a full year to foreclose), but I didn't correct
him. But when he messed with me again, I had no trouble walking away
and borrowing the money from my brother (until I could get a mortgage
from another bank)

Ed says

Does he have a place to go?

It was a hypthetical after a discussion with a friend. I know no one in
those shoes, afaik. Copy of all 3 replies to her.

One thing he can do is notify the bank that he is going to walk away. A
relative did that a couple of years ago and they worked with him to
avoid a lot of crap.

That's good.

A lawyer may help if bankruptcy is an option.

Rod wrote:

Wait for the market to improve so that it least pays off the mortgage.

Or if you are in a non recourse state, just hand back the keys.

I can see why neither of us thought of this. I don't know what the law
is in Maryland but fortunately we don't know anyone like that. I do
know someone who got divorced and couldnt' afford his house, couldn't
afford the mortgage, but the bank discounted the house for the next
owner. Maybe from the seller's pov, it was an example of this.


Thanks, all.

In alt.home.repair, on Fri, 05 Jul 2019 21:11:42 -0400, micky
wrote:


No, he needs to sell. He's tried to rent it and can't. He doesn't even
live there. He can't afford to pay the property tax. He's too old to
mow the lawn and he hasn't the money to pay someone, and the city is
fining him. It needs a new roof for 10 or 20K or the rain will damage
the inside.

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

BTW, this would not happen to me because I bought far less than my
income would have allowed.

"micky" wrote in message
...
In alt.home.repair, on Sat, 6 Jul 2019 01:55:56 +0000 (UTC), danny
burstein wrote:

In micky
writes:

No children or others to lend him money. His only big asset is the
property and that already under water. Let's say he paid a million
dollars, including 200,000 in cash so the mortgage was 800,000, but
prices have gone down and the best offer is $720,000. Not even
considering a real estate commission, he needs 80,000 more to pay off
the mortgage.

Depends whether it's a "non recourse" State.

In some areas, the mortgage holder can _only_ go
after the property, which gives the "owner" [a]
the option of calling the bank up and saying
"I'm walking out; the keys are under the mat".

This was a common event in the years following
the "great recession" of a decade ago.

Look up the term "jingle mail".

I'll do that.


In a "recourse" State, the lender can go after
other resources but might, or might not.

[a] term used a bit loosely given there's a
mortgage and who actually "owns" the land
is a bit grey, but you know what I mean..

I do know what you mean. When I first applied for a mortgage 35 years
ago, the bank mortage company agent know all 30+ questions by heart and
he must have found his job unsatisfying, because he started off saying
"Look, were going to own this house for the next 30 years so this is
what you have to do." I think it's clear in Maryland that the owner
owns it (and it can take a full year to foreclose), but I didn't correct
him. But when he messed with me again, I had no trouble walking away
and borrowing the money from my brother (until I could get a mortgage
from another bank)

Ed says

Does he have a place to go?

It was a hypthetical after a discussion with a friend. I know no one in
those shoes, afaik. Copy of all 3 replies to her.

One thing he can do is notify the bank that he is going to walk away. A
relative did that a couple of years ago and they worked with him to
avoid a lot of crap.

That's good.

A lawyer may help if bankruptcy is an option.

Rod wrote:

Wait for the market to improve so that it least pays off the mortgage.

But he will be paying the property tax while that
happens so it could be a while before that pays
off and he could be dead before that happens.

Or if you are in a non recourse state, just hand back the keys.

I can see why neither of us thought of this.
I don't know what the law is in Maryland

It isnt a non recourse state.

but fortunately we don't know anyone like that. I do know
someone who got divorced and couldnt' afford his house, couldn't
afford the mortgage, but the bank discounted the house for the
next owner. Maybe from the seller's pov, it was an example of this.

No its non. Non recourse means its entirely the
lenders problem if the keys are handed back.

On Friday, July 5, 2019 at 10:38:39 PM UTC-4, Clare Snyder wrote:
On Fri, 05 Jul 2019 20:43:15 -0400, micky
wrote:

What is one to do if he wants to sell real estate, but he bought it not
long ago, prices have gone down since he bought it, he has no other
substantial assets, and the highest amount he can sell it for is not
enough to pay off the mortgage?

Sounds like another Mikey screw-up.

It's apparently a hypothetical. One thing the owner can do is talk to the mortgage holder, see if they will do a short sale, where they agree to a sale price less than the mortgage. If not, the owner can offer to sign over the deed to the mortgage holder. If they refuse, let them foreclose. If the owner has no significant assets, no good income, unlikely a bank would try to sue them to try to recover money. Can't get blood from a stone.

On Sat, 6 Jul 2019 13:53:19 +1000, cantankerous trolling geezer Rodent
Speed, the auto-contradicting senile sociopath, blabbered, again:

FLUSH the auto-contradicting senile troll's latest troll****

--
about senile Rot Speed:
"This is like having a conversation with someone with brain damage."
MID:

On Sat, 6 Jul 2019 12:00:25 +1000, cantankerous trolling geezer Rodent
Speed, the auto-contradicting senile sociopath, blabbered, again:

micky wrote

What is one to do if he wants to sell real estate, but he bought
it not long ago, prices have gone down since he bought it, he
has no other substantial assets, and the highest amount he
can sell it for is not enough to pay off the mortgage?

Wait for the market to improve so that it least pays off the mortgage.

Or if you are in a non recourse state, just hand back the keys.

Those answers were provided by others already, you senile pest! Just what in
hell makes you believe anyone's answer will only be valid when YOU confirm
it? You do it time again, you self-important pathological idiot!

--
Sqwertz to Rot Speed:
"This is just a hunch, but I'm betting you're kinda an argumentative
asshole.
MID:

In alt.home.repair, on Fri, 05 Jul 2019 22:26:01 -0400,
wrote:


You must live in a depressed place if real estate is down there. Must
be up north somewhere. We aren't quite 2004 (market) here but that
seems to be not that far off. Even mobile homes that were stuck at
$80k through the boom and bust are $125k now.

It wasn't any particular place or particular year, just a hypothetical
problem. Sorry for any confusion.