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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
    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
    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
    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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