I figured I would tap into the vast and amazing knowledge pool in DKos world for advice.
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So 5 years ago a friend and I bought a house and we have no late or missed payments. He found the love of his life and is now moving to WI so I have to figure out what to do with the house.
My mortgage is $1150 I make around $2000, I have other bills that total my bills (not incl food and gas)incl the mortgage to about $1800 so this is not an ideal situation for me. I talked to my mortgage co re a refi briefly. They stated the closing costs would be around $2500.00 (PHH MORTGAGE) and they may be able to drop my payment to $750 but my mortgage insurance (FHA FIXED RATE LOAN) will be $160 so that puts me up to $910.00 which slightly better but I would still be very tight on funds and not really able to save up money for home repairs or finish up my schooling.
So I am looking into Deed in Lieu with the hope that the mortgage co goes for it. My house is worth less than I owe (like everyone else's), I paid $155,000 for it and it's worth about $73000 per Zillow.com. I really would not want to do a short sale as I hear that is hell and certainly don't want to foreclose.
I have read that I just missed the mortgage forgiveness thing where if you sold or FC on your house they would forgive whatever extra you owed so you didn't have to pay taxes on it. Does anyone know how the Deed in Lieu really works, has anyone done this or does anyone have recommendations?
I really don't want to do the roommate thing as I am too old to live with strangers and I would like to finish my last 2-3 classes and get my massage license and then I could make enough cash to easily keep this place. Should I see if I could get a 2-3 month break in payments from my loan co to finish school ?