Best of Luck,
I work in right here in the Garden City area. Assessed value often doesn't have much to do with the actual value of the house. In fact, prices are on the rise here in Garden City.
There are a few different things you could do, and I'd like to talk to you more about them.
Please email me at JeffGushman@gmail.com. Let me know the address of your house, bedrooms, basement/etc, and how much you owe, and I will see what houses are going for in that part of town.
Look forward to talking to you!
Century 21 Castelli
It doesn't work that way:
You are proving to the Bank that you not only good at paying your bills, but you also do not feel the obligation to fulfill your obligations; why would the Banks give you another chance to do that?
You could probably do a short sale; the Bank would rather lose a little now, rather than more later.
Then you will be without a house, your credit will be ruined, and you will have to wait at least two years to get another loan.
How much your present house WORTH does not matter; it is a roof over your head. Your family has a place to live.
Often times, if you're trying to short sale but aren't facing a financial hardship, you'll likely be outright denied.
Some lenders, however, might approve you for a short sale on the contingency that you pay back the difference in a structured 10 or 15 year loan.
In order to be forgiven for any deficiencies (amount owed on mortgage - short sale price) you would have to explain and demonstrate that you are unable to make full payments or soon will be unable to make full payments. The lender requires a "hardship letter" to go along with the 2 most recent year tax returns, 30 days of most recent paystubs, 2 most recent bank statements, and an income and expense sheet. Often times, most people are several months behind on payments and have at least attempted to apply for a loan modification. For those individuals, the deficiency will usually be forgiven (always forgiven under the HAFA program).
If you aren't facing a hardship (reduction in income and adjustable rate increases are legimitate reasons), and are attempting a strategic default, then fannie mae, freddie mac, and fha guidelines would prevent you from obtaining another mortgage for at least 3 or 4 years after completing the short sale.
Those lucky enough to have been approved due to verifiable hardships (reduction of income, interest rate adjustment increasing their monthly payments) AND were current on mortgage payments all the way until the short sale closes are able to IMMEDIATELY qualify for a new FHA mortgage.
FHA has very strict guidelines. If you were to apply for a mortgage immediately after closing the short sale, your explanation would have to be consistent with someone who was in a very bad financial position and not someone who wanted to move on to a bigger home.