Home Selling in Las Vegas>Question Details

jen, Other/Just Looking in Fairless Hills, PA

How do I get out of an underwater mortgage?

Asked by jen, Fairless Hills, PA Thu Sep 23, 2010

My husband and I bought a condo in Las Vegas in 2006. It has dramatically dropped in value and is currently worth $30K, and we owe $144K on it. It's a 1 bedroom 560 sq. ft condo, which was fine for us back then. Last year we had a baby and even though space was tight we were trying to make it work. Now that our kid is a toddler and running around, the space issue is really a concern. We have our son sleeping in the den (about 4 feet away from the stove). It's very hard on my husband and I because once our toddler goes to sleep at 7pm we are confined to a tiny room about 10ft away and have to be silent as to not wake him up. We have thought about renting it out, but no one will pay $1200 for 560 sq ft. The condo next to us is larger and renting for $650. I called the mortgage company and they will not refinance our mortgage. I have thought about short selling, but it's not financial related. We don't have enough money to pay the mortgage and rent another bigger place out. Suggestions?

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I would seek the advice of a realtor in your area that specializes in short sales and a real estate attorney. I believe you do have a hardship based on the items stated in your question and would qualify for a short sale if properly presented to the bank.
0 votes Thank Flag Link Wed Oct 6, 2010
Underwater on your home mortgage? Don't walk away! Don't short sale! Sell your home for FULL PRICE to us! http://www.USAHomeBuyer.net
Web Reference: http://www.USAHomeBuyer.net
0 votes Thank Flag Link Tue Jul 26, 2011
Honestly? Once you miss ONE payment, you are most assuredly goping to lost the asset. However, if you DON'T miss a payment, a bank will NOT work with you.

I would prepare beforehand, your exit strategy and plans for the future. We all have a future and it should be planned for.

I've got great FREE information for you at my site. HowToBuyABankHome.com
0 votes Thank Flag Link Thu Jan 6, 2011
Whatever you do I would avoid walking away from it. Lenders are cracking down on "strategic" foreclosure and you are risking potential legal action.

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
sandy@land-homes.com
Web Reference: http://homesales411.com
0 votes Thank Flag Link Thu Oct 7, 2010
Sorry to hear about this unfortunate situation. I would recommend doing a short sale. However, before you list your home with an agent, speak with a good real estate attorney, so you know what to expect and know how the short sale will affect your credit.

Best wishes to you.
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Jen,

There is a common misconception that a homeowner must have a "financial hardship" to qualify for a short sale. The truth is you may qualify if you've had any substantial change in your life since you closed on your loan. In my opinion, and I know the banks agree, having a child is a significant change. I've attached a link below to Short Sale Frequently Asked Questions Videos on my website. I recommend you check out the videos and let me know if you have any other questions.

Thank you,
Jamie Cox
702-487-0000
0 votes Thank Flag Link Wed Oct 6, 2010
Hello Jen,
Call me,I know I can help you. I have 2 great ideas on how to lower your mortgage payment and about 6 more options involving renting or selling. Forgive me for not wanting to give my great ideas away online, but if you call me I will tell you everthing I know with no strings attached. I recently gained a wealth of knowledge about condo's and would love to pass it on.

Pamela Maloof
702-686-2226
0 votes Thank Flag Link Sun Oct 3, 2010
Have you thought about renting your place out? The reason I am asking is because you have to show a hardship to get a short sale. Because you want to move and get a bigger place is probaby not a hardship. So if you can come close to your payment you might think about renting. That is the direction a lot of people are having to go right now to ride this out. Be prepared it could take sometime to turn around. Be ready also if someone moves out and your out of rent money for a few months. I know times are really touch with all of this. But until they come up with a plan to stop the bleading for everyone this is the point we are at.

Debby Homestead Realty Inc
http://www.debbyrealestate.com
0 votes Thank Flag Link Thu Sep 23, 2010
Have you thought about renting your place out? The reason I am asking is because you have to show a hardship to get a short sale. Because you want to move and get a bigger place is probaby not a hardship. So if you can come close to your payment you might think about renting. That is the direction a lot of people are having to go right now to ride this out. Be prepared it could take sometime to turn around. Be ready also if someone moves out and your out of rent money for a few months. I know times are really touch with all of this. But until they come up with a plan to stop the bleading for everyone this is the point we are at.
Debby Homestead Realty Inc
http://www.debbyrealestate.com
0 votes Thank Flag Link Thu Sep 23, 2010
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