Posted on: 19th Jul, 2009 04:18 pm
I have an 80/20 loan (1 is a 15 year balloon, 1 is an ARM) the ARM is coming up next August. I want to move out of the house because I'm getting married and want to start a family and my condo is too small to do that in. And initially I bought this house in the boom and was only wanting to stay in it for a few years..now I'm stuck!! I can't sell and I probably can't refi due to the value of my house dropping by over half! What should I do?
hi sharts,
if your arm is due to recast in august, you need to get it refinanced. but as your house in under water, you will not be able to refinance. moreover, since you are looking to get a new house, a refinance will not help you. in that case, the only other option is to sell the house. if the house does not sell, you can go for a deed in lieu of foreclosure. but this will affect your credit and getting qualified for a new loan will not be easy at all.
if your arm is due to recast in august, you need to get it refinanced. but as your house in under water, you will not be able to refinance. moreover, since you are looking to get a new house, a refinance will not help you. in that case, the only other option is to sell the house. if the house does not sell, you can go for a deed in lieu of foreclosure. but this will affect your credit and getting qualified for a new loan will not be easy at all.