Posted on: 28th Jan, 2008 10:37 am
My fiance and I are trying to purchase a home this spring in Ohio. He has a home he purchased almost 2 years ago in another state (IN). The house is in an econmincally challenged area and has no value. The mortgage on the house is an ARM, the mortgage recently went up again. We live too far to manage a rental property, besides the house needs too much work. My fiance makes the payment every month but it is starting to be a burden, that money can be used for the purchase of a new home in the city that we live in. Is there any way out of ths
Hi Kenyae,
Welcome to the forum.
Do you want to sell the house and pay off the mortgage? What is the appraised value of the house and how much does your fiancé owe to the lender still now for the house?
Thanks,
Larry
Welcome to the forum.
Do you want to sell the house and pay off the mortgage? What is the appraised value of the house and how much does your fiancé owe to the lender still now for the house?
Thanks,
Larry
We really want to sell the house, it is valued at about 30,000 he owes 45,000.
Hi Kenyae,
Welcome back.
So it will bw a short sell and the sell prise will be $15000 lesser than what he owe to the lender. So can he afford to pay that money back now to the lender?
Thanks,
Larry
Welcome back.
So it will bw a short sell and the sell prise will be $15000 lesser than what he owe to the lender. So can he afford to pay that money back now to the lender?
Thanks,
Larry
Do we do the short sale with the lender, what happens if we can't sell the house? No, he cannot afford to pay them $15,000 we are trying to buy a home in May. I really don't know what a short sell is, does that mean we sell it back to the lender?
hi kenyae,
welcome back.
if you sell the house less than the amount what you owe to the lender it is called short sale. so as you have said the appraised value of the house is $30000 and your fiance owes to the lender $45000, that means the sell price will be $15000 lesser than what he owe to the lender.
you can better talk to the lender and find out if he can allow you deed in lieu of foreclosure. if he allows you for dil, then you will need not to pay the deficiency amount.
feel free to ask if you have any further questions.
thanks
welcome back.
if you sell the house less than the amount what you owe to the lender it is called short sale. so as you have said the appraised value of the house is $30000 and your fiance owes to the lender $45000, that means the sell price will be $15000 lesser than what he owe to the lender.
you can better talk to the lender and find out if he can allow you deed in lieu of foreclosure. if he allows you for dil, then you will need not to pay the deficiency amount.
feel free to ask if you have any further questions.
thanks
Thanks Larry, I will have him call the lender this evening to see what options he has. Do you think wwe should wait until we purchase our home together this spring?
Thanks
Thanks
hi kenyae,
welcome back.
that will be better. because if you for short sell or deed in lieu now before the purchase of a new house, the credit score of your fiance will drop down may create problem to get a mortgage for the new home.
"the house is an arm, the mortgage recently went up again" so you can try to refinance the mortgage for the time being if you can get a lower rate. shop a bit for lenders and if you can find a lender who can offer you lower rate and better terms you can do it. it is not that you will have to refinance the mortgage from your present lender only.
feel free to ask if you have any further questions.
thanks
welcome back.
that will be better. because if you for short sell or deed in lieu now before the purchase of a new house, the credit score of your fiance will drop down may create problem to get a mortgage for the new home.
"the house is an arm, the mortgage recently went up again" so you can try to refinance the mortgage for the time being if you can get a lower rate. shop a bit for lenders and if you can find a lender who can offer you lower rate and better terms you can do it. it is not that you will have to refinance the mortgage from your present lender only.
feel free to ask if you have any further questions.
thanks