Need to sell house for less than we owe. Don't want a short sale. Can we add difference to new home?

Asked by Jdeck, 34990 Mon Aug 17, 2009

mortgage? My fiance owns a home in FL and we have to move to IL in 6 months, but we owe more than its worth. We want to buy a house in my name before we get married to receive the $8000 first time home buyer credit (since I qualify). Can we roll the money we still owe on his house after the sale into the new mortgage for the new house that I buy? We don't really want a short sale. We can make the payments now just don't need a house in FL once we move to IL.

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Jeff, Home Seller, Palm City, FL
Thu Jun 6, 2013
Absolutely impossible. A short sale doesn't have to be as bad as it seems. We did one and quickly recovered our credit within a few months because from the time we went into default to apply for the short sale until the time we sold it was only two months. So the credit report only shows 60 days late, paid in full.

You need to get all your ducks in a row before you go into default. Have your realtor lined up, and have it priced aggressively. You need to get the bank and the realtor working together to agree on listing price.
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Equity Homes…, Agent, Oklahoma City, OK
Tue Aug 18, 2009
You will not be able to roll the extra amount into a new mortgage. How short is your ffiance on the home in FL? Perhaps he can get a loan to pay the difference owed. Does he have savings?

The bank is not going to want to do a short sale unless your fiance is behind on his payments, living in the home, has no way to repay the loan, etc. And like you said, you don't want to do a short sale.
Good Luck
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Darla Solomon…, Agent, Jupiter, FL
Mon Aug 17, 2009
You won't be able to roll the difference into your new loan. You may want to contact the bank to see if you can get a loan modification or refinance your loan to get the payments lower and then rent it out until the equity increases.

Good luck!
Darla Solomon
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Gabe Sanders, Agent, Stuart, FL
Mon Aug 17, 2009

This probably will not be possible. Any mortgage you attempt on a new home will need to be based on the apraised price of the home that is being mortgaged. They will not loan considerably more than it's worth and then they will not give you cash to pay off the old one.

You might want to consider renting it, but chances are that it will be a money losing situation. If you would like, give me a call and we can work out numbers and your options.

Gabe Sanders
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Abe Mills, Agent, Greenville, SC
Mon Aug 17, 2009
It sounds like you need a second mortgage, or line of credit, on your new home to cover the difference on the old one. Thats how I would go about it, otherwise, there is no way that I can think of that you will be able to make it happen.

Good Luck!
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