I'm sorry to hear you're in difficulties with your property. I've spent a few years working in real estate here in the UK, and have worked with a lot of people in very difficult personal situations, where they were having problems getting rid of a property. i have me/cfs and have had periods when i was bedbound, and in financial trouble, so i can relate to your situation a little.
Some thoughts, I suspect many may not help, but I'll mention them anyway in case maybe something is useful to you. i expect you have thought about most of this already, but here goes...
- Are there any debt-support non-profits/charities you can go to for independent advice? don't do it alone if you can avoid it. in the UK there are gov funded organisations that help people in trouble, and i'm sure there must be something similar in the US.
- Lawyers always primarily act for themselves, and in my experience often do not understand the practical realities of selling property quickly. their advice is important, but remember they follow you, not the other way around.
- There are many companies that offer fast-property-sale services. Unfortunately this industry is full of sharks, so tread very carefully. But some of them are decent people who want to make a fair profit but also genuinely want to help people in need. If you feel able, you could contact some of these companies and have them come see you, but not necessarily with the intention of selling to them, but to get ideas about your options. they all have different criteria, but does your property meet any of their criteria...
- Don't take the non-sale of the property personally. I know it's hard, but don't hurt yourself that way. Property is worth not what the realtor or the lawyer says, it's what the BUYER says it's worth. If it's not selling, it's not because it's a bad house, it's because the demand is lower. The truth is that all houses sell, it's a matter of price. If you need it to sell faster, the price has to go down. When you reach an impassable limit on price drops, then you need to look at other options, e.g. sell to someone and you retain some of the debt, or you lease it, or stay in it and rent a room, or....
- You could try posting on an internet forum where property investors hang out. yes, many are sharks, and always remember that, but some are not, and on the net you can get ideas from them of your options. if they say that no investor will buy from you because of xyz then although that closes a path to you, it clarifies your remaining options
- Always keep pressing the bank to help, physically meet them if poss (maybe through a friend/family) and find out what their criteria are for foreclosure, what is the minimum you can do and stay? what do they recommend you do? how are they willing to help? are there any organisations locally that fight banks to stop foreclosure?
- I've seen too many people take on high-interest debt to clear unpaid mortgage payments. it's a temporary solution. i'm glad to hear you've been looking closely at loan rates.
- Remember that you didn't do anything wrong, the economic collapse has hurt so many people, it's not your fault.
- if anyone comes offering contracts & a deal, don't sign anything without taking lots of advice (professional, and friends/family). but of course the decision is ultimately yours for what you do. never let the lawyer decide ;-)
- If there are any opportunities to lease a room/garden/parking or whatever, anything to use the property to generate income. no-one wants a stranger renting a room, especially when we're ill, but sometimes it may be the pragmatic answer. it may not be possible, it would be very hard I know
- Remember that no matter how hard it is, sticking with it until the economy recover may increase the value fairly quickly to recover your loss. I understand you may not be able to avoid selling, but if you can hold on, that may be better in the longer-term.
I think the best thing you can do is fine someone who is very experienced in real estate deals and financing in your state, who is sympathetic, and who can help you understand your options.
