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My property recently sustained major damage due to bank erosion caused by hurricane flooding. The house is now teetering over a cliff and may not be habitable. Erosion wasn’t a part of my homeowners policy, so I’m left with a 6-digit mortgage and nowhere to live. I’m waiting to see what’s available as far as Federal disaster relief, but here’s what I see as my options: A) repair and rebuild, B) go belly-up on the mortgage, C) short-sell the property. Option A is financially unrealistic. Option B will wreck an immaculate 40-year credit history at a time when I’ll need it the most. I can continue to make payments for a while, but it doesn’t make sense to pour $ $ into the property indefinitely as it is. My question is: How would short selling affect my credit? Are banks apt to work with me on this? Any advice?

3 Thoughts on Short-selling property in a natural disaster situation?
  1. Reply
    kemperk
    August 18, 2011 at 10:27 pm

    excuse this approach, but why not move the house?

    there is an entire field called HOUSE movers.

    IT costs 15-35k to move a house; that is, if its condition
    after moving could be brought back to exc condition for
    another 15-30k–all write offs.

    or, you can dismantle the house and replace the bad parts
    and keep the good and put it further inland.

    Too few people are not creative; at least you are thinking.

    [putting a BELT around the house, it can be moved off the cliff
    by 2 tractors–or, it can be dismantled.]

  2. Reply
    Samurai
    August 18, 2011 at 11:02 pm

    This may sound silly, but what about trying to get on that show on MSNBC that comes on at 5p.m. or getting on Suze Orman’s show?

  3. Reply
    Dizzy_Lizzy
    August 18, 2011 at 11:15 pm

    That sucks. I love how homeowners insurance seems to cover everything but what you actually need it to.

    I don’t so much have advice as a question. If you don’t want to or can’t live in this house, why do you think someone else would buy it? For a short sale to happen, someone has to want it, and I don’t know who would want a house in this condition…unless it happens to include a ton of other buildable land.

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