other options instead of foreclosure?
I moved with my husband to Charlotte NC about 3 years ago from FL. We purchased a house from the bank (3 years ago) that we thought was a great deal, we only paid $ 115, 000. Since there was not urgency to move we decided to refinance the house for a lower interest rate about a year ago which brought our loan to $ 123,500. I have since lost my job, and my hubby is able to transfer back to FL so we want to sell and move ASAP as we are using our savings to cover some bills. The problem is that so many houses in my neighborhood went into foreclosure and sold for an average of $ 80,000 as early as March 2009. We would have to sell our house for $ 133,000 to even break even with all the Realtor fee’s. As you know that seems almost impossible.
We considered renting, but our mortgage with escrow is $ 1000 per month and we would only be able to rent for $ 800. That leaves us paying $ 200 out of pocket, and paying the property manager 10% on top of that. Plus we would be responsible for maintenance and repairs. We can not afford that.
What other options do we have aside from foreclosure and a short sale that will not effect our credit as bad, and will allow us to purchase another home in FL within a year? I have heard of Deed in lieu of, is that a realistic option? Are there any government programs that would assist since I am not working? I do not want to do a loan modification since there is also a fee for that by the bank and it will end up hurting us more then helping us.