I agree with the last 2 answers. There are a variety of soluctions to this scenario and the advice can be anywhere from loan modification to bankruptcy. Advice should be from an attorney and/or tax professional.

Len, I agree 100%, and I couldn't have worded a better rebuttal.

I tend to avoid recommending bankruptcy attorneys in these kinds of matters, because many of them tend to recommend bankruptcy as the best--sometimes only--solution.

Recali,

Your comment sounds very selfish. It is completely untrue as well. Of course this person posting this question should consult an attorney, however taking a attorney's sole advice is not always the best idea. Most bankruptcy attornies will just advise on letting the property go back to the bank at the end of the bankruptcy instead of doing the short sale. This is why it's a good idea to talk to several professionals before moving forward with a bankruptcy. An attorney is great for advice, but it's not the end of the road.

Although you definitely should consult with a real-estate attorney (local to the target property), it wouldn't hurt for you to also consider doing a short-sale. A knowledgeable real-estate attorney--who also has bankruptcy experience--can advise you on both matters.

Attorney is your answer any agent who wants to short sale is looking for a paycheck! Not that it's a bad thing we all want paid but talk to a Real Estate Attorney in your are where your house is :)

I have friends that actually did what you are talking about; but I too say contact an attorney. My friends foreclosed on their larger home and moved into their smaller home. We tried selling their home, but it was impossible and they were willing to bring cash to the closing table if necessary. The bank had refused a short sale at the time this was taking place. They still are carrying the mindset that the smaller home they are currently in is worth much less than what they paid for it, so will they walk away again? Their thoughts are if the bank refuses to modify their current loan, they will walk away from the current smaller home as well. My suggestion is to try to sell short and/or contact an attorney.

Another thing you can ask for is a short-refi, I have heard of the bank has cooperateing in this fashion. You don't have to be behind on the payments, but the bank allows a refi at the true current value and the owner stays. There are credit ramifications with this process as well.

You can call me (702) 521-3939 or (888) 949-2890, I can help.

Kim Duclos CRS GRI ABR
Coldwell Banker Wardley

Teresa,

Are you located in the Las Vegas area? Have you thought about doing a short sale? If so, I would be happy to help you if your home is in the Las Vegas area. I am an expert in short sales and this will typically be better than the foreclosure that will happen at the end of the bankruptcy. Even if you choose to file bankruptcy, many banks will still allow you to do a short sale when the bankruptcy is completed or before it is filed. Let me know if you have any interest. Thanks!

Len McGuirk, CSP
Certified Short Sale Professional
Prudential Americana Group
Direct: (702) 203-6688
LenM@AmericanaGrp.com

Teresa,

Most certainly you should contact an attorney. I have a current client working with Black & LoBello in Summerlin; he seems happy with the service.

Please take a look at the link below.

Good Luck!

...something for nothing and your chicks for free.....

oh dear.

Bankruptcy questions would be best answered by a bankruptcy attorney, not a Realtor. If you decide to sell one or both homes, I can help get it sold and negotiate the "short sale" with the lender, but talk to an attorney first to put together a plan of action based on your needs. Also, laws vary from state to state, so you'll want to let anyone you speak with know which state you live in and, if different, which state the property is in. I think quite a few offer free consultations, btw.