Posted on: 23rd Jun, 2010 06:32 pm
I am an owner of a townhouse, and the home values, or selling prices are lower than what my payoff is. Can I sell the townhouse and roll the negative equity into my new home mortgage? Thanks for the help and advise!
No, you cannot. You will either need to bring cash to close or pursue a short sale with your lender. Short sales can be difficult but are worth trying. Note, that if you remain current on your payments and achieve a short sale, FHA may allow you to purchase a new home immediately after.
Another option would be to keep it and rent it, but with no equity, your income would have to be enough to qualify for both mortgages without using the rental income.
Best of luck to you.
Another option would be to keep it and rent it, but with no equity, your income would have to be enough to qualify for both mortgages without using the rental income.
Best of luck to you.