Posted on: 23rd Jun, 2009 01:18 pm
I have a similar question although not quite the same. I have a property that I rent about 88 miles from where I currently live. My renters will most likely try to buy a house next tax season. Actually i am thinking about asking them to buy mine w/o the messy 6% rate for a realtor. Anyway, I would like to sell my property and buy one here. Has anyone heard of a "short sale," where the money that is still owed on the property is transferred to the new loan for the new property. So if I still owed 50K on the old proeprty. If I bought a new homes for 200K,the mortgage compnay who then make it 250K. That way they still get their money and everyone (sort of b/c I'm still losing) is happy.
Sammishel
Welcoem to the forum
I am not sure if such kind of loan programs exists any more.
Good luck
Welcoem to the forum
I am not sure if such kind of loan programs exists any more.
Good luck
Hi Sammishel,
It is not possible for you to include an existing loan balance into a new mortgage. It could have been possible if you had refinanced the property. But in this case, you are trying to sell the property and buy a new one. The existing mortgage is secured by your current property, while the new mortgage will have the new house as its collateral. The old mortgage balance cannot be wrapped into the new home loan.
A short sale is a different thing. Here, the lender allows the borrower to sell his property at a price which is less than the actual amount owed on the mortgage. The borrower, however, has to pay off the difference between what he owes on the loan and what the house is short sold for. The borrower is not allowed to include this difference in a new mortgage on a new property.
It is not possible for you to include an existing loan balance into a new mortgage. It could have been possible if you had refinanced the property. But in this case, you are trying to sell the property and buy a new one. The existing mortgage is secured by your current property, while the new mortgage will have the new house as its collateral. The old mortgage balance cannot be wrapped into the new home loan.
A short sale is a different thing. Here, the lender allows the borrower to sell his property at a price which is less than the actual amount owed on the mortgage. The borrower, however, has to pay off the difference between what he owes on the loan and what the house is short sold for. The borrower is not allowed to include this difference in a new mortgage on a new property.
There refinance is option for this ?
Hi
If the property is refinanced, the balance loan amount on the existing mortgage can be wrapped into the new mortgage. But there has to be enough equity in the property in order to do so. Given the situation here, the borrower is planning to leave the property to purchase a new one and a refinance will not help him.
If the property is refinanced, the balance loan amount on the existing mortgage can be wrapped into the new mortgage. But there has to be enough equity in the property in order to do so. Given the situation here, the borrower is planning to leave the property to purchase a new one and a refinance will not help him.