Getting out of a bad mortgage

Asked by Michael Lueckert, Jacksonville, FL Thu Jul 12, 2012

We bought a house to turn on an 80/20 loan 6 months before the market dropped. The 179,000 home is now assessed at 116,000 and we can't do anything because of the 20. Can I negotiate a buy out with the servicer for less than the principal remaining? The original loan was 38,500 at 13.5% (yes, we were stupid), we've paid 28,000 on it over the last 6 year mostly interest. It is a 30 year fixed, but I was hoping that if I offer 15,000 cash as a buy out along with what we've ready paid they may be interested. Is this a false hope or did I find a way out?

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John Breen, Agent, Jacksonville, FL
Thu Jul 12, 2012
Hi Michael,

My advise to you is work with a good realtor. And have a sit down with a good r.e. attorney. You should be able to negotiate a buy out but let an attorney make that call. The Villas have been hit hard and the Market Value for your property has dropped to $98k. Please contact me directly if you need anything.

John Breen
904 349 0082
0 votes
, ,
Thu Jul 12, 2012
It doesn’t hurt to ask, but do everything in writing and get the answer in writing. I would also ask that the offer be accepted as payment in full otherwise they will report that they accepted less than what was owed which is what they are supposed to do. But if you are negotiating it doesn’t hurt to ask.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Tim Fennell, Agent, Jacksonville, FL
Thu Jul 12, 2012

Are you saying that you tried to negotiate a short sale but the second blocked the sale? We have a high success rate negotiating short sales. Contact me if you want to discuss your options.
0 votes
allan erps,A…, Agent, Pearl River, NY
Thu Jul 12, 2012
probably a false hope. If there is a hardship involved you should seek legal & real estate expertise. I do though believe at the very least(if payments have been current) that the Bank would reduce your interest rate considerably. Call them as well!
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