First of all I want to say that this website has been very helpful and has contained alot of information.
My situation is this: I have a townhome in MN that I am renting out but the tennant has given her notice and not going to renew. The area where the home is located can't support the type of rent I need just to sustain a minimal loss. I had a market analysis done and of course nothing is selling and the listing prices are way below what i owe on the property. My mortgage is a 80/20 with EMC (subsidary of Chase). I called them letting them know my situation. They told me to apply for the home ownership program(obama's plan), but I automatically exempt since it's non owner occupied. I have been looking at options of letting it go back.
I have thought that maybe by best option would be going with the Deed in Lieu of foreclosure option vs. letting it go back as a foreclosure? Can this be started even though I am current? Has anyone worked with EMC before? Can somebody explain what exactly happens? Credit ramifications? I currently have excellent credit 750+. If I continue to make payments on time with other creditors will they raise my rates, close accounts, etc? If they raise the rates, don't you have the option to opt out and continue at the current rate, but the account is inactive? I was thinking of taking some money out while I can and put it away for down the road (taxes, problems, etc). I am sorry for rambling, but I have so many things going through my mind and don't really know where to start. I want to be proactive and get the ball rolling before I get months behind. Any information would be greatly appreciated. Thanks