Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Underwater Mortgage Question...

Posted on: 12th Aug, 2009 10:09 am
Hello,

My wife and I bought a home in 2008 thinking we were buying at the bottom of the market. We bought the house a little ways outside of the city because at the time that was all we could afford and we paid 130k for the home. Since then I got a new job that now requires me to drive for 2 hours from home to work which is killing us. We really need to get out this house and move closer to my job and the city but would likely have to sell for 100k to be able to sell. I am employed, have excellent credit, and never missed a payment... is there any way out of this without getting stuck with a 30k credit card bill? Short sale maybe? Any suggestions or thoughts would be appreciated.

Thank You! Tim
connectstar

check with lender for a short sale and ask if the lender agree to forgive the deficient amount

good luck and feel free to ask
Posted on: 12th Aug, 2009 08:25 pm
Hi connectstar,

You can definitely apply for a short sale however, you would be liable for the deficient amount resulting from the sale of the property. You will have to pay off the deficient amount to the lender or else he would charge off the amount to a collection agency. Also, a short sale will reduce your credit score by 80-100 points. However, once you go for a short sale, you'll not be able to get a mortgage immediately. You'll have to wait for 2-3 years in order to get a loan.

Thanks
Posted on: 12th Aug, 2009 09:17 pm
Hi thanks for your responses!

I heard that I have to be behnid on my payments or in financial trouble to get a short sale... is this true? My problem is that I can afford the mortgage but simply do not want to live in that house anymore due to the problems with distance... I don't mind not being able to buy another house for a few years... I can always rent an apartnment or something.

Thanks again!
Posted on: 13th Aug, 2009 09:45 am
Hi connectstar!

Welcome to forums!

It is true that a lender would accept your short sale request if you're past due on your mortgage payments. However, you can always inform your lender about your situation and apply for a short sale. It would depend upon the lender whether or not he would accept your request. To know how a short sale affects your credit, check out the following page:
http://www.mortgagefit.com/discuss/shortsale-crediteffect.html

Feel free to ask if you've further queries.

Sussane
Posted on: 14th Aug, 2009 12:40 am
Page loaded in 0.113 seconds.