Home Buying in 28562>Question Details

dws222, Home Seller in New Bern, NC

Is it possible to sell home for less than what you owe and then borrow the difference just to get rid of home?

Asked by dws222, New Bern, NC Tue Oct 16, 2012

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Hello,

I suggest you talk to your bank and see if your eligible for a short sale (the bank agreeing to except funds less than what you owe in the sale of your home. Also consult with your CPA about the tax implications as well.

Best of luck
0 votes Thank Flag Link Thu Apr 3, 2014
dws22,

Yes that is possible.
It depends how much you owe who are you banking with and what other assets you might have. I could help you check your property current value an initiate short sale process with your bank. You can reach me at 252-617-0861
Web Reference: http://www.sonjababic.com/
0 votes Thank Flag Link Tue Oct 16, 2012
Have your Realtor approach your mortgage holder with the plan. I bet they will allow it.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Tue Oct 16, 2012
Probabily not, your bets bet is a short sale where the shorted amount is forgiven. I have seen people who owned more than 1 property take a new mortgage on one house they had equity in to pay off a mortgage on the home they were under water on.
0 votes Thank Flag Link Tue Oct 16, 2012
I would try a short sale first and see if the lender will agree to less. Borrowing the difference is not something you would want to do. If you had family who would give you the difference, that would be great. I have seen some lenders finance the difference with zero interest. Ask you lender and see what they suggest. So sorry not more helpful.
Sincerely,
Margie Rowe
0 votes Thank Flag Link Tue Oct 16, 2012
It sounds like you are trying to avoid the debt of the difference and get "rid of the home":

As far as the difference; they call that the "deficiency", and North Carolina is "Non-Recourse" State:
What that means is that the Bank cannot come back to you for the difference. Understand that that is not a black-and-white thing; each State has exclusions and rules regarding that procedure, and you should check on North Carolina's. I certainly wouldn't want you to quote me to anyone there as I am not an expert on N.C. deficiency judgement rules.

As an aside; if you do one of the alternatives; Foreclosure, Shortsale or Deed-in-Lieu, you can also make it a part of the deal that the Bank give you a letter absolving you of any further debt.

These are things which you probably should discuss with a Real Estate Attorney there: There is too much money involved for you to not have good legal advice.

Good luck and may God bless
0 votes Thank Flag Link Tue Oct 16, 2012
You may be able to do a "short sale" and have the bank forgive the difference so you do not owe it or have to borrow the money. I will be glad to answer your other questions about real estate in New Bern! Call me at 252-259-6904 or email me at RealEstateRowland@gmail.com
0 votes Thank Flag Link Tue Oct 16, 2012
If you're borrowing the difference from your mother, then "yes". If you're planning on borrowing that amount from a traditional lender (ie: bank)... they'll want some sort of collateral against the loan.
0 votes Thank Flag Link Tue Oct 16, 2012
Alan May, Real Estate Pro in 60201
MVP'08
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