Property Q&A in 19135>Question Details

Kimberly, Both Buyer and Seller in 18509

Need help...Own home that is worth less than owed.

Asked by Kimberly, 18509 Tue Mar 29, 2011

I own a home that is currently worth less than I owe e.g. owe 130K, worth 110K.
I am renting the property because I moved last year (also taking a loss on that - rent charged is less than mortgage payment).
I tried to refinance with my current mortgage company and was denied.
I really do not want to keep the house. Do I have any options? (I do not want to do a short sale)
For example, If I sold the house and got 110K for it but I owe 130K...Do I have to pay the extra 20K owed at closing? Or can I continue to make loan payments on the remaining 20k to the lender?
Thank you for your time!

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Answers

5
If the mortgage on this property is Fannie Mae owned we may be able to refinance it up to 125%, check out my link below and call with any questions
0 votes Thank Flag Link Wed Mar 30, 2011
A lender will not finance a property for more than its current value. You should see if its assumable and maybe you could transfer the loan. You a few options to choose from.
0 votes Thank Flag Link Wed Mar 30, 2011
I would prefer not to do a short sale because I do not want my credit to be affected. I am current with my mortgage payments but all of the money going out per month is getting to be too much.
Since the lender told me that comparable properties are lower than what I owe...Is there no way that I could try to sell my home for what I owe?
0 votes Thank Flag Link Wed Mar 30, 2011
Kimberly,
Blanche is right. She is an expert on short sales and an excellent agent. She is very easy to get along with and a person you can trust. She and I both love what we do and always look out for the best interest of our customers. Give her a call. She's great!

Yve Banks
REMAX Specialists
267-975-0372
0 votes Thank Flag Link Wed Mar 30, 2011
In your present situation a short sale is the best option unless you increase the rent to cover the current mortgage payments so that you won't have to pay out of your pocket. As far as you trying to sell the house for 110k and making payments on the balance... Well the house must be payed off in order to transfer the interest to the next owner. So the bank has to be payed the amount owed... Do you know if your mortgage is assumable?

Not sure what your reason is for not wanting to do a short sale ... I know it can take a while sometimes but some banks have actually gotten a lot better and quicker with this process. Good luck with whatever you decide to do. If you would ike to contact me directly with any further questions or to go into detail a little more . Please feel free to call me at 215-668-9279 Blanche Smith
0 votes Thank Flag Link Tue Mar 29, 2011
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