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Realrenoesta…, Other/Just Looking in Reno, NV

We are looking to relocate, but our house is at half value of the mortgage. Our neighbors houses has been on

Asked by Realrenoestate, Reno, NV Fri Jun 26, 2009

the market for months with some as forclosures. We are not behind on any payments and want to (trade) the house for one in the new location at it's current market value. The questions are; does any one have any experience in this area? Are there any incentives being given to mortgage companies to address this type of situation. What are the options for homeowners in good standing?

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The trade isn't going to happen.

Your options are to use it as a rental, short sale or foreclose.

If you have a hardship such as a forced relocation to find work, this will help with a short.

You need to get educated on your loan(s) and the implications if you walk. Were they purchase money or refi money? Is there a senior and a junior lien? In Nevada, are there judicial foreclosures? Is there recourse on the lien?

I strongly urge you to find a successful real estate broker who has a proven track record of closing shorts and can give you counsel. You also need to speak with an accountant as well as a lawyer. These are big, life changing decisions and this is not the time to try and go commando.

Good luck.
0 votes Thank Flag Link Sat Jun 27, 2009
People are walking away from their mortgages all the time; You can quit paying and then try to make a deal. Is this practical? Did the mortgage company/broker act in good faith when they made the loan, or were they only trying to suck you in to sell the paper to the herd on wall street? Will not paying help your credit? Probably not, but then if you have cash you don't need credit. Only you can decide.
0 votes Thank Flag Link Sat Jun 27, 2009
The options for a homeowner in good standing is: to continue paying. That's it. There are no incentives whatsoever for your bank to help you out and forgive the debt, not trigger a due on sale clause, or anything else.

The only way to sell your house is to short sell it. You don't neccessarily have to be behind on your payments to do so, depending on the bank your mortgage is with, but you have to be able to justify to the bank why they should take less money than is owed to qualify for a short sale. You will need to discuss your situation wtih a default resolution specialist to see if you can qualify for a short sale in your particular situation. I can't tell you if you might without doing full financials so please feel free to give me a call for a consulation if you would like to pursue this possible option.

Nice idea to trade it, but who would want to take on that excess debt? I'd say it would be very difficult to find a willing "trader" for that- and the bank would call the loan in full most likely- check out your deed of trust and see if it has a due on sale clause. Almost eveyr mortgage does, and when the new owner goes to put the title into their name, that would trigger the clause, so basically they would now owe ALL the money on the note at once.
0 votes Thank Flag Link Sat Jun 27, 2009
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