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How to get out of an upside down mortgage?

Posted on: 05th Jun, 2010 12:01 pm
i was hoping to sell out home this year when our girls went off to college. then the housing market dropped and now we are upside down with our martgage. our income has slowly decreased over the past years and are having difficulty meeting expenses, living paycheck to paycheck with no expendable income. i've looked into refinance but extends our mortgage, needng up front money for closing costs and only lowering the interest 1%. i've looked at modification and our debt to income ratio is too great and won't modify our loan. if we do a short sale and sell then we will owe taxes on the differance and won't have the money to pay and i'm fearful of how all this will affect our credit to purchase a new place. how can we get out of this burden without getting screwed? what about trying to sell it ourselves?
Welcome Guest,

You can list the property in the market and check out if you can get buyers for the property. You can even contact real estate agents and they can help you in selling the property.

In case, you are unable to sell off the property, you can contact your lender and apply for a short sale. It is true that a short sale will have negative affects on your credit report but you will be able to get rid of the property. After a short sale, you won't be able to get a mortgage for the next 2-3 years and your score would go down by 80-100 points. Also, you will be liable for paying off the deficient balance resulting from the sale to the lender.
Posted on: 07th Jun, 2010 02:01 am
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