Home Selling in 38002>Question Details

Sellinginarl…, Home Seller in 38002

If we sell now, we will most likely take a loss. What does that mean for the next home we buy?

Asked by Sellinginarlington, 38002 Tue Apr 10, 2012

If you sell and "take a loss on the sale", does that loss become just a note that you pay until it is paid off or can you put that loss into the next home you buy and pay it in your next mortgage?

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We might be able to help you! Have considered short selling your home? Call us today and we can discuss further.

Laura and Jason
1 vote Thank Flag Link Tue Sep 4, 2012
You might consider renting for a year or 2. I will be happy to discuss this option!!! Contact me if you have not found a solution.

Henry Booth,Jr
Omno Property Management, Inc
0 votes Thank Flag Link Mon Sep 3, 2012
I am a short sale professional and I would love to explain the process to you. Feel free to call me at 901-690-1885 to explain the process.
0 votes Thank Flag Link Wed Jul 18, 2012
If you take a loss, and owe the bank money for the loss...you generally can either make a cash payment to the bank, or sign a promissory note to pay the deficiency over time. You can't put that loss into the next home and pay it on your next mortgage (assuming you can get a new mortgage).....you don't 'roll over the loss'. There will be impacts of taking a loss, and that will determine your ability to get a mortgage for the new home.
0 votes Thank Flag Link Tue Apr 10, 2012
No, you must satisfy that mortgage commitment (pay if off) - not roll it over to the next mortgage or take it as an additional note. With the exception of a personal line of credit/mortgage usually gotten from small banks that personally know you. This is rare, but I have had clients who have done this, however they either had other collatarol or were doctors, engineers, etc.

Now, if you are referring to a "short sale" as Alan was referring to - that's another ball of wax. Don't kid yourself into thinking you'll be paying off your loan short and going straight into another mortgage. Your credit will take a hit and you will need to wait to rebuild it.
0 votes Thank Flag Link Tue Apr 10, 2012
Unless you're conducting a short-sale, when you sell, your mortgage needs to be "paid off" at the closing. So if you're selling your home for $10,000 less than you PAID... it just means you'll make that much less.

If you're selling for $10,000 less than you OWE, then you either have to come to the table with that $10,000, or make arrangements with the lender to accept a short-sale, wherein they take the loss.

They'll only do that under certain circumstances (most of them involve some sort of financial hardship on your part), so if you can afford to pay the shortfall, that's probably the route you'll need to go.
0 votes Thank Flag Link Tue Apr 10, 2012
Alan May, Real Estate Pro in Evanston, IL
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