If you signed an exclusive right to sell agreement, then you will probably have to abide by that. The agent will be representing you in the sale process and will earn their commission there.
Now if you really want to fight it -- check with an attorney. You MAY have a right of recission on the agreement you signed with the real estate agent.
Another option -- is talk with your agent -- actually, the employing broker. Tell them this was an earlier prospect and show them some proof of contact. Ask them to drop their commission in half as result. This way you can get the benefit of representation at a better price.... more
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
I do not know all the details, but based on what you have posted I see it this way
You are not involsvent, so you would probably not qualify for a hardship (short sale).
Also, you want to buy a new home (apprarently) and not trash your credit..again, not a short sale friendly option.
So what is left:
1. Rent it out, talk with a CPA...you could be an accidentail real estate investor...not the worst thing. Happened to us, we did very well...in the long term.
2. Sell at a loss, ask the lender to give you a promissory note to pay back...I advise against that.
Talk with a Realtor that knows the market and investment properties. Get the facts, then talk with a CPA.
Post if you need more indol... more
I highly suggest you read the book Total Money Makeover by Dave Ramsey. This will give you some good direction in your desire to reduce your debt.
You need to speak one on one to a real estate agent in your area. There is no cost to you to talk with an agent who can tell you what the house will likely sell for in this market. If you've done some improvements to the house, your home is probably worth more than you paid. Get a bottom line number. If you sell your house and the proceeds aren't enough to cover both loans, you have to bring cash to the closing table to pay them off.
If you don't have the cash, are you better off concentrating all your extra income to the second loan while making minimum payments to everything else? If you did that how quickly could you pay off that second mortgage and then sell your home?
You could also refinance so that you would have just one loan, but that doesn't reduce what you actually owe on the house.
So my final answer is, talk to a real estate agent in your area and then talk to a lender and see what they say. Give them the actual numbers and they can you some very specific steps to take.... more