Home Selling in Louisville>Question Details

Hrwsr1, Home Seller in Louisville, KY

How to get from old house to new house?

Asked by Hrwsr1, Louisville, KY Sat Aug 21, 2010

love your show!!

I need to know do you have any friends in the housing field that know the mechanics of getting out of a mortgage on an old house thats worth less than the mortgage?

I've lived in my current house for 13 years. I bought the house in the mid $40Ks. After home equity loans (credit card loans, taxes, etc) I owe a balance in the mid $60Ks. I went to different housing sites and determined that the house is worth in the low $70Ks.
Its just that the house does not LOOK like a $70K house.

I STILL have a good amount of work to do on the house. How do I get out of here and into another house??

A realtor friend asked me if I was willing to sell the house for around $55,000, take the Obama tax break for $7,500 and pay the balance of the mortgage. I realize that the deadline has past. ---Just a suggestion---

I have a no other debt except a car loan that will be paid in less than a year.

Have any creative ideas in getting out of this mortgage???

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Mack’s answer
There are several options available as it pertains to your mortgage under the Home affordablility act that you should explore, but simply getting out of one mortgage and into another because you don't like the home may not be one of them. I would start by calling my current loan servicer and explore just exactly what would be available. Another option would be to look into interviewing several real estate professionals to come out and give you a Certified Market Analysis (CMA) and see if selling and moving on would be an option. the online valuation models you are referring to are there to give you a general idea, but know that they can be all over the board when it comes to their estimate. Getting out with nothing would be better than doing something that could impact your ability to purchase a new home. See the link below for a place to start. Good luck.
1 vote Thank Flag Link Sat Aug 21, 2010
If you know you aren't going to be able to your home for at least as much as you owe, you might consider renting it for now. Based on your car being paid off soon, it may be within your budget. Or, depending on the work that needs to be done, now may be the time to put the necessary work into the home to get it ready for Spring. Many contractors are offering deals right now due to slow business.
0 votes Thank Flag Link Mon Aug 23, 2010
I don't think that you truly "get out" of a mortgage. You can pursue a short sale, but there will be questions of need, coupled with a hit on your credit score.
0 votes Thank Flag Link Sat Aug 21, 2010
Contact your lender and ask for a short sale application to see if you qualify. Your lender might take less than you currently owe.
0 votes Thank Flag Link Sat Aug 21, 2010
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