Realtor/ Mortgage Consultant
If you have a good credit score, sufficient funds and are not late on your mortgage, you probably don't qualify for a short sale. You need to be in a hardship position in order to do a short sale.
Trying to get a loan after doing a short sale? Not going to happen. Those with great credit and good jobs are sometimes finding it hard to get a mortgage, I don't know of any bank that would approve a loan right after someone defaulted on the previous loan.
If the deficiency between what you received from the sale and what you owe on the mortgage is a manageable amount, you can bring money to close and pay the difference. This will have no effect on your credit and the loan would be considered paid in full. Then you would be able to get a new loan.
Mortgage guidelines are changing since the 1st of the year. You will need to check with a lender to see what is required for a down payment. Conventional loans will require more than going FHA for the down payments.
Your best bet is to talk to your bank. Ask them this question and they will be able to tell you what options you may have. Most likely no they will not allow for 100%plus loan. If you can afford to come to closing with cash, maybe they would allow an unsecured loan. Maybe you have a personal line of credit you could use. We could spend all day with the possibilities, so give them a call. I wish you the best of luck and hope it all works out.
Have a wonderful day,
When you say "roll the remaining amount in" you're asking if you can take your negative equity and finance it in with the mortgage on the new house??? This is something commonly done with automobiles but NEVER with houses...
Think a little about the consequences of that course of action. If you start your mortgage off with negative equity you are going to be in the same shape you're in with your current home only worse with the new one.
Your best bet is to stay where you're at, pay it off, or speak to an experienced mortgage broker and Short Sale Attorney to see what your options are.
Best of luck!
That is a great thought to roll in the remaining amount you owe into another mortgage. What a way to AVOID damaging your credit. It is best to ask a lender what programs are available for creativity like this.
I can help you with the Short Sale process when you are ready to sell.
Melissa Leetzow E-PRO SFR Realtor
Coldwell Banker Primus
You will need to pay off your existing mortgage in full at closing. As for your next home purchase, if you were to go with a FHA loan, you would only need to put down 3.5% plus any additional closing costs.