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Moving with underwater mortgage

Posted on: 29th Jan, 2012 06:36 pm
My wife and I are preparing to send our first child to kindergarten and would like to move from our home to switch school districts.

We're upside down on our home in Missouri. We owe $385k and it's worth about $315k.

Would it be possible to move and transfer our negative equity to another home? We both have credit scores a touch over 700 with no negative history. Our income is solid as well.

Any thoughts on whether this is even possible? We currently have an 80/20 loan with Wells and a local credit union.

Thanks!
Hi kcfrank,

You won't be able to transfer the negative equity in your present property to some other property. You will have to sell off your property and pay off your mortgage in full and then you can buy a new property at some other place.
Posted on: 29th Jan, 2012 09:41 pm
If you're having trouble making payments, you may be able to get your loan restructured. Or, as a last resort, there's a short sale. That's when your lender let's you sell the house for less than you owe.

:idea:
Posted on: 30th Jan, 2012 12:44 am
thanks for the reply. we're not having trouble making payments. we just want to move if at all possible.
Posted on: 31st Jan, 2012 05:12 am
Hi Guest,

As you are not facing any troubles in paying off the mortgage, you won't qualify for a loan modification. Your best bet will be to list the property in the market and sell it off.

Thanks
Posted on: 31st Jan, 2012 10:42 pm
There are a lot of people having problems with mortgages. It was estimated 22.8 percent of homes, more than 11 million houses, are underwater. And that means almost a quarter of homeowners owe the bank more than their house is worth on the market. If you are not to agree on selling your property you still have another option. If you want, you can use a short term loan to pay for your rent. Works for me! :wink:

[Link deactivated as per forum rules. Thanks.]
Posted on: 29th Apr, 2012 10:34 pm
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