Home Selling in 01960>Question Details

Tfielder, Home Seller in 01960

I have a home that is worth less than I owe due to repair needs. I have not lived there for 1 1/2 years but paid the Mortgage. It now needs to go.

Asked by Tfielder, 01960 Wed May 18, 2011

I have never made a late payment and am not behind now. I don't have funds to renovate; and, frankly, sinking more money into it, i don't think, would provide any real gains. What options do I have? I don't want to sell short or go to foreclosure. How can I get my lender paid what I owe and still dump the house when i am $8k short of break even?

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Stephen DallaCosta’s answer
We could market it to buyers that would be interested in having the repairs done before they move in with a 203K loan, contact me and I will have my team look at the property and find you a buyer. stevedallacosta@gmail.com 978 604 9600
0 votes Thank Flag Link Sun Nov 17, 2013
Have you thought of renting it? You could use the rent to pay down the mortgage so you aren't upside down or pay for updates so you can sell.
0 votes Thank Flag Link Sun Nov 17, 2013
If it is not your primary residence it makes it tougher, Have you thought of selling it and you financing it ?
0 votes Thank Flag Link Sat Nov 9, 2013
I guess how do you know the value of the home in the current market? Do you have a recent appraisal or Free Market Value Report from a local Realtor? Is your home on the market? Have you tried loan modification? Is this an investment property? Hard to answer your questions when I have so many of my own questions to be able to advise you! Talk to a local REALTOR who has their CDPE (this means they specialize in helping people who are underwater in their mortgage)
0 votes Thank Flag Link Tue Oct 25, 2011
Home seller:

If you are really only 8K short, you should be able to find a solution that works. I would recommend meeting with a good realtor in your area and also get an attorney on board that does a lot of work for the lender your loan is with. If you get the right players involved you should be able to come up with a solution. best
0 votes Thank Flag Link Sun Jun 5, 2011
Do you currently rent out the house or have considered it? How bad are the repair needs? If you are in peabody please let me know if I can be of any help. I would not recommend short selling for only $8,000 difference! Im a little confused how you came up with the $8,000 breakeven number. How do you know you cant get a bit more for it and break even? There are other methods to consider too depending on your lender.
0 votes Thank Flag Link Tue May 31, 2011
Also remember that selling as a short sale is still a default on your credit - not an ideal solution.

I agree with David, hang onto it if you can. That $8k short you mention, does that include all your selling and closing costs? If you use a broker they'll need to get paid, then you have tax stamps for MA. So if you were going to try to cover the deficiency with a personal loan you'll need to cover these as well.

The market is improving. If you can hang on, do....
0 votes Thank Flag Link Mon May 23, 2011
You can pay the difference at the settlement table, but otherwise there are not a lot of options other than to hold on to the property until it appreciates a little or you pay the mortgage down a little.

If you don't have the $8000 you may want to look at drawing a personal line of credit or some other loan to help get you the money to dump the house, then you can pay back that loan in the upcoming months or years.

Otherwise, you can try to talk to your bank, but I doubt they will approve releasing the lien without going the full short sale route.
0 votes Thank Flag Link Wed May 18, 2011
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