We at our office work with a law firm that can get you a reduction in your loan balance to current market value or even less. There are a lot of home owners today that received a Loan Mod that fixed there rate for 5 years. It was great when they got it but they didn't read the fine print. Now the money that they didn't pay has been added to the back of there loan. Now they can't afford there payment (the Next Wave of Foreclosures) because the payment is going up with the money being added to the principal.
Our program is NO COST to the client. It's not a Loan Mod, The procedure is quick 30 to 45 days and you could have a new loan with a balance equal to current market value or even less.
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How did you come up to the present value of 650K ? friends? family? licensed appraiser?
If you don't have much equity in your house and don't want to lose money on it, maybe you should try to short sale it. Talk to a short sale specialist in your area.
What is your TOTAL current mortgage payment + any other fixed cost you have with that house? Could you rent it out for that amount of money and break even?
You situation is common and could answer any other questions you have.
Goog luck Nance
Otherwise, your only options are renting it until the value goes up. (A good property management company is Chamberlain) OR Short selling it (I can help with that)
See if your mortgage is allowed to be assumable (taken over by a buyer). If so you could sell the house without paying closing costs and the deed just get transferred to the new buyer. It makes it easy to buy a home and some buyers are willing to pay more just for the convenience.
Also, some mortgages require permission to rent the home. I've found that even if the mortgage originally wouldn't allow renting, they are allowing it in this market if you tell them you couldn't afford to make the payment without a renter.
You may already know, but the market has been trending upward in price over the last 8 months. So your options would be to carefully consider:
1) Sell now and have some (or all) of your down payment disappear
2) Rent your home out, in hopes that appreciation continues and you are able to sell at a break even or better position (this depends on your cash flow, as many rentals at this price range run at a negative monthly cash flow = you still have to pay a few hundred out of your pocket to cover all housing expenses)
3) Hold tight, see if market continues to appreciate and if it does sell at that time
My guess is you probably knew these were your options, but sometimes it helps hearing it from someone in the industry. I wish you the best of luck!
Kindred Real Estate
There are many downsize options available in the area that would allow you to still live in San Marcos but for perhaps half of the mortgage and payment you have now. If you can sell the home you have and buy one like this http://www.trulia.com/property/3122037499-1514-Caminito-Agua you might be able to cut your payments in half due to lower rates and a much lower loan amount. Please feel free to call me at 760-585-8328 with any questions you may have.
Uriah Anderson, CA Dept of Real Estate Broker License #01303991
you do not state what your down-payment was so we cannot say how many months it would take to recoup it in saved payments if you decide to stop making payments.
if you put 20% down you still have a little equity...if you put less down the math is more bleak.
Hope this helps..Kimberly
The main thing right now is to determine if you want to stay in your home to preserve the home (if you can afford to stay in the home) or be able to stay at home with your baby (which is commendable!), and risk not being able to keep your home. There really isn't an easy answer, or a right answer, just the best choice for you given your alternatives. I'd be happy to discuss this more in detail with you as there are MANY pros and cons (tax consequences, etc.) with everything you are thinking about. Please feel free to visit our website for our contact information.