Some of the comments below are well meaning, but not realistic. Many owners are leaving their severely underwater homes with good reason. Why throw good money after bad is the question of the decade. You would think as an Agent I would embrace the bank bail-out for job security reasons. But truth be known it disturbs me to see so many 800 Fico score homeowners and investors losing their entire life savings over this banking irresponsibility.
I've been processing short sales since 1996 with 100% success closing rate. Call me if you want to talk about your options, and yes, you will most likely be able to do the short sale, if that's what you want, and after you've spoken to a tax accountant or/and tax attorney....which I have contacts for both. Severe loss of value is something banks approve as hardship these days. I've helped many other homeowners like you, and some while they were current on mortgages.
Good luck with your decision. And wishing you a Happy Easter.
Isabelle M.J. Javier
People & Properties
Sotheby's International Realty
360 Diablo Road
Danville, CA 94526
The only way to get your principle reduced is to do a loan modification. If you decide to go down that road, contact your lender directly and ask what the procedure to do a loan mod is. Do not pay an outside company to help you do one. If you are not able to do a loan mod, then you have 2 options, short sale or foreclosure if you do not want to keep paying your mortgage. There are a few others, but those are the most prominantly used.
If you do decide to stop paying your mortgage and you want to buy sooner than later, then you would want to purchase your next home before you do your short sale, if possible. Unfortunately, the bank usually won't work with you to do a short sale until you are late on your payments. I am not suggesting you are late or don't pay, I am just letting you know how banks tend to work. Short sale for you might be the best way to go if you want to buy another home and don't need to use credit for anything major down the road after completing your short sale.
If you've never been late, and your income is good, I don't know how you can qualify for a short sale.
"If short sale, how soon before we can buy again?:
Typically, and assuming you are repairing your credit after you do a short sale, it may take an average of two years to qualify to buy another property
And, if you are contemplating a short sale, know that you need to qualify for a real hardship --- just because property values have dropped since you bought yours isn't a justifiable hardship by itself.
What constitutes hardship? Reasons why people apply for a short sale
Too much debt
Death of spouse
Mortgage payment increases
Damage to property
Decline in market value (NEED to sell, for example, in the case of a relocation but property is worth less)
99.9% of all loans have some type of Federal Violation.
We investigate some of your documents, if we find violations we can negotiate with your lender to reduce your loan amount to 95% of the current market value.
Want more information? 858-945-1047
I have been assisting distressed home owners with free loan modification assitance for over 3 years now. I would be happy to look at your particular situation and advise from there. People usually can purchase a home after 2 years on a short sale vs. 7- 10 in foreclosures.
Additionally, as other have so aptly stated, You're too golden for a LM. Good credit and employment track record and no hardship? They won't even talk to you. If you're really that intent in leaving your neighborhood then find an experienced distressed property agent/broker and do a short sale. With your credit and employment and a 25% DP you shouldn't have any problems getting financed. I've seen folks get re qualified almost immediately after a short sale if they're solid and have ample flesh in the deal.
But if the only reason you're wanting to move is because you're under water but still like your home and neighborhood and can afford it you may want to just hang in there. My home has gone from 1.6m to a Zillow Zestimate (which I don't give much credence to) to about 750K. But ask me if I care. My wife and I raised our 5 children in this home during the past 30 years and now our almost bakers dozen grand-kiddies are frolicking about picking fruits and veggies from our property.
Sometimes it's just about quality of life. It will probably take us the rest of our lives to revisit the paper loss we've incurred on our hyper-inflated property but Oh Well. We didn't care when it was valued at 1.6m and frankly we don't really care that it's only valued at 750k now. We just love our home.
It's sad that so many folks just trivialized the most important investment of their lifetime as a mere ATM machine. A home is supposed to be where the heart is. But so many homeowners today just wanted to use it as a slot machine. Sorry about the rant but it just hurts to see this going on day after day.
If you would like details on how this program works send me an email.
This is certainly the six million dollar question these days with ethical and business strategies bumping heads! There are banks which are allowing short sales for underwater homes just because of the values declining and allowing you to buy within six months if you are current on your mortgage payments. My suggestion would be to try a loan modification (as an owner/occupant) to see if the bank will grant you one. You can do that yourself by contacting the bank and asking for the paperwork you will need. As someone else pointed out, do not pay for someone to do this; there are a lot of "scam artists" taking advantage of people right now.
There is also the possibility of renting out your home in Antioch/Oakley area until the market turns around and going into the area in which you would like to live and purchasing a townhome/home simultaneously. With good income, credit and a bonifide signed lease for your Antioch/Oakley home, you may be able to qualify for that closer commute location. If you need recommendations for loan officers to discuss your qualification, I am happy to provide.
Carolyn Zeigler, CRS, CDPE
It appears based on the information you have provided that a loan modification is your best alternative. Take the savings from the mod, if you are successful, and then position yourself for future investments. This is an investment market. The best advice is to speak with either a real estate attorney or financial planner, both of which I can refer you to some of the best.
Good luck to you,