Home Selling in Pampa>Question Details

Chris, Home Seller in Pampa, TX

How can I get out of my mortgage in Texas without hurting my credit?

Asked by Chris, Pampa, TX Thu Aug 19, 2010

My job transferred me out of state. I've been trying to sell my house for 2 yrs in TX. It's priced 8000 less than what I owe. I have even tried Leasing it and renting it. I have excellent credit and don't want to hurt it. I am wanting to purchase another house in the state that I am in now since this is going to be my permenant residence, but the banks wont lend me since with this house in TX is going to make my Debt to Income ratio to high. Any help will be appreciated.

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Hi, how are You? It's been a while and I was wondering what happened with your situation?
0 votes Thank Flag Link Sun Mar 11, 2012
As the others say, renting your old home would be a good option. Figure out what the problem is. Why isn't it renting?

The other end of the equation is your current housing situation. I understand that you'd like to purchase a home where you are now, but that may not be possible. Your best bet may be to continue renting. One other possibility: Consider a lease-option or rent-to-own. You can't really do that effectively in Texas--Texas restricts those--but there's no similar problem in the other 49 states.

Hope that helps.
0 votes Thank Flag Link Thu Aug 19, 2010
Don Tepper, Real Estate Pro in Burke, VA
It is possible that your bank might allow you a promissory note for the balance.
I would talk with your bank, explain the situation, and see what they will do.

Also, I suggest talking with a CPA regarding tax consequences. Most people do not take tax into account when determining if renting out a property makes sense. You need to find out the tax implications while it is a rental, and what happens when it is time to sell.

Good luck.
0 votes Thank Flag Link Thu Aug 19, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
What seems to be the problem with renting it out?

Seems like renting it out would be the best bet or have you considered leasing with option to buy? There has got to be a creative way to get the house taken care of without ruining your credit especially if you are under whats owed. A short sale will ding your credit by at minimum 50 points and it would seem that would impede your ability to maintain good credit to repurchase.

Get more aggressive with your home - is it clean, staged, in good working order etc. Maybe get a home tender to share expenses till it sells. Probably would need to seem some pictures and more information to assist further.
0 votes Thank Flag Link Thu Aug 19, 2010
You really need to call your bank. They can work out the details for a short sale but it will take a while. All banks are really slow so start the process now. This will hurt our credit and you will not be able to buy a house so your best bet may be to rent the home out to offset your debt ratio. There are new rules on how this works as well so I would speak with a local mortgage broker or lender who is experienced and can offer assistance.

If you want to buy a house renting your current home is your best shot because once you get behind or short sale it will be at least a couple of years before you can buy a house again.

Good luck to you.
0 votes Thank Flag Link Thu Aug 19, 2010
Have you spoken with your bank? An agent who specializes in this type of situation? A job that has taken you out of state certainly qualifies you for some relief! If you are not represented currently I would conduct phone interviews with several agents and ask for references.
Have you considered a shorter term rental marketed to HR departments at larger companies in your area - new hires live there for 3-6 months while they look for a home to purchase and in exchange you receive a higher rent?
Is your home being properly maintained now? Is it staged and appealing? A vacant home often sits on the market...
If I may help you further with questions or an agent referral, please let me know. Best wishes!
0 votes Thank Flag Link Thu Aug 19, 2010
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