Carmen - There is no grandfathered clause in the Exclusive Right to Sale contract unless it was written in by your realtor at the of the signing (which I do for my clients if they have open leads from FSBO marketing).
Carmen - IF your buyer gets through the entire process for buying this house (negotiating price, signed offer/contract, inspections and re-negotiating after inspections and keeping the contract moving forward with the title work and lending companies) - your new agent will have put in alot of work to work to get a "closed" sale. You may find your realtor is willing to take a reduced fee or you could ask to cancel the exclusive and have your realtor sign a Transaction Broker Agreement instead (which means they are responsible for facilitating the transaction only but not representing to the buyer or the seller) to complete the transaction at a reduced fee. I would stay with the Exclusive with a reduced fee negotiation myself as you might find you need that representation during the negotiating that happens after inspection process
There are several options here - but having a interested buyer doesn't always mean a closed sale. There is a long way to go to get to the closing table. Use your realtors expertise to close the deal and work with him/her to come up with compensation that is fair for everyone.
Assumption of an FHA-insured mortgage is a servicing function where the responsibility of the mortgage is acquired by another person through either Simple or Creditworthiness process. Individuals may assume mortgages originated prior to December 1, 1986, by utilizing the "Simple Assumption" process. For those mortgages originated on December 1, 1986 and thereafter, HUD placed certain restrictions on the assumption of those FHA-insured mortgages and those mortgages have to go through the Creditworthiness Assumption process. Please refer to the Assumption Chart for 1) Mortgage Original Closing Date, 2) Owner-Occupancy Requirement, and/or 3) Investor Limitation. (You can find it at www.hud.gov/utilities/intercept.cfm?/offices/hsg/sfh/nsc/rep/asmchart.pdf. (Just copy and paste in your tool bar.))
The bottom line is that this is not as easy as it sounds and there are a lot of issues to contend with especially with an FHA. Whatever you do, do not leave that property! FHA will automatically say you abandoned the home and that will disqualify you for all the options you may have access too.
If you need more help feel free to contact me at 816-268-4176.... more
The short answer here was NO, unfortunately you can not move down the road with that unsecured debt from the home even if you buy a smaller home. Not even if it had enough equity to support the note. How did everything turn out here? Are you going to read the Total Money Makeover by Dave Ramsey? and, did this squash your dreams for a sale and smaller payments? I do ask because I want to see if it is necessary to discuss the foreclosure avoidance plans that are available as well. Look forward to talking to you soon.......... more