good afternoon........the below listed comments are good ones....but also consider another option.....if you are currently on an fha loan, then you would have to buy the new home with conventional financing.....if you are not on an fha loan, then you can purchase your next home fha.......the loan does require 3.5% down, and the seller can pay up to 6% of the price of the home towards your closing costs and pre-paids.....out of pocket expenses prior to close are the emd, first yr's hazard insurance and if you want an inspection, you would need to pay for that also...the lender may or may not require $ up fron for the appraisal.......depending on the new home price, many times the 6% concession can about zero out the dollars needed at the closing table....and get you down to a total of the downpayment required...you would have to qualify for both you payments....the new housepayment would be the front end ratio, and your debts and the existing housepayment would constitute the back end ratio...best of luck to you......bob mcclure- success mortgage partners- plymouth, michigan.....

Sounds like a short sale. You will get rid of house and pay nothing out of pocket, if it is handled correctly.

Absolutely try a short sale. You may not receive any monies out of that sale. At the same time all fees are paid out of the offering price at closing with the lender receiving a net amount after all expenses are paid. So you don't pay any selling fees either.

Today you don't have to be in arrears with payments in order to do a short sale. You do have to qualify, meaning your assets must be less than your liabilities and you don't have any funds to bring to the closing table. Your lender will ask for supporting douments.

Hi Jen,

This sounds like a short sale situation. A short sale is when you "short" or pay less to your lender than what is owed. This is a much better option than foreclosure and will affect your credit rating much less. I work exclusively with a law firm that specializes in short sales and have sucssefully closed on them in the past. All of the sevices provided in a short sale, my commision and the lawyers fees cost you absolutely nothing! Feel free to contact me at any time to for a no obligation consultation to discuss your options.

Have a Great Day!

Tim
tfitzgerald@c21proteam.com
815-353-1901

Tim
tfitzgerald@c21proteam.com
815-353-1901