We had to move out of California due to a job transfer into Montana and we were unable to sell our house. We owe $450K but it's only worth $199K. My wife is not on the deed of the house and she is going to lose her job next month. We have renters in the home on section 8 but the rent doesn't come clsoe to making the payment alone. We have been told that we can not do a mortgage modifcation because it's not our primary residence. Do we have to try a short sell first? Can we do a deed in lieu of? What are our options?
Real Estate Attorney
Most banks will not accept a deed in lieu before you have first exhausted every effort to sell the property for a fair price by today's standards. If the property is listed for sale, make sure it's listed at a price that the bank considers fair (ask them) before spinning your wheels, because if they feel you have it listed too high, they will ask you to reduce it before they consider a short sale or deed in lieu.