Posted on: 24th Jan, 2011 10:57 am
We're currently underwater on our mortgage, but want to move. Bought at $240k in 2006, assessed value was $187k. Currently owe $225k, and assessed value is now $156k. Financed 100%, monthly pmt is $1900. Combined annual salary is $145k. Both have excellent credit (760 & 780).
We are fortunate to be able to comfortably afford our mortgage payment, and feel blessed to be able to do so. Our problem is that we hate our house, mostly b/c of location. Our perfect world would be to take out a personal loan and bring a check to closing to pay off the mortgage. The loan will probably have to be around $40k to cover the loss and realtor commission. We would then rent a home in our desired location for much less, be able to pay off the $40k loan in just over a year, then save for a down payment on another home. All the while being happy with where we live, rather than miserable.
Is this a feasible plan of action? We do not want to wait it out in our current home, all we want is to be OUT of it!
Thanks very much!
We are fortunate to be able to comfortably afford our mortgage payment, and feel blessed to be able to do so. Our problem is that we hate our house, mostly b/c of location. Our perfect world would be to take out a personal loan and bring a check to closing to pay off the mortgage. The loan will probably have to be around $40k to cover the loss and realtor commission. We would then rent a home in our desired location for much less, be able to pay off the $40k loan in just over a year, then save for a down payment on another home. All the while being happy with where we live, rather than miserable.
Is this a feasible plan of action? We do not want to wait it out in our current home, all we want is to be OUT of it!
Thanks very much!
Hi mtaylor!
Welcome to forums!
In order to get rid of an underwater mortgage, you can surrender the property to the lender and walk away from it. The lender may foreclose the property in order to recover the dues. After foreclosure, however, you may even be liable for the deficient balance resulting from the property sale.
Personal loans are available at a higher interest rate. If you can afford to pay off the higher interest rates on the loan, then you can take out such a loan to pay off your mortgage. Then you can rent a home and save for your down payment and take out a new loan to buy a property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In order to get rid of an underwater mortgage, you can surrender the property to the lender and walk away from it. The lender may foreclose the property in order to recover the dues. After foreclosure, however, you may even be liable for the deficient balance resulting from the property sale.
Personal loans are available at a higher interest rate. If you can afford to pay off the higher interest rates on the loan, then you can take out such a loan to pay off your mortgage. Then you can rent a home and save for your down payment and take out a new loan to buy a property.
Feel free to ask if you've further queries.
Sussane
Thanks for the input and vote of confidence, Sussane! Just curious, what would constitute a higher interest rate? 10% or so?
Welcome mtaylor,
I will pitch in for Sussane here... The rates for personal loans will be normally higher than traditional mortgage interest rates. You will get an interest rate of around 8% - 10% or even more.
I will pitch in for Sussane here... The rates for personal loans will be normally higher than traditional mortgage interest rates. You will get an interest rate of around 8% - 10% or even more.
mtaylor,
If you haven't already, apply for a HAMP loan modification. Based on your facts, your monthly payment doesn't exceed 31% of your gross income.
A HAMP denial carries with it a HAFA short sale approval and as of 12/30/2010 you no longer have to proved hardship with HAFA.
Good luck!
If you haven't already, apply for a HAMP loan modification. Based on your facts, your monthly payment doesn't exceed 31% of your gross income.
A HAMP denial carries with it a HAFA short sale approval and as of 12/30/2010 you no longer have to proved hardship with HAFA.
Good luck!