Purchased a home in 2007 with a fixed 30 year mortgage, 6.1 % and a home equity mortgage 9.25 % thus mortgaging at 100%. Now looking to sell with the

Asked by kbs2116, Yonkers, NY Sun Dec 9, 2012

appraisal of the home coming at $100,000 less than our pay-off. Realtor has suggested a short sale. We are current on payments. The loans for the home are in my husband's name. While the title of the home is in both our names. Question: Can I use my retirement to put down a payment on a home in the area we wish to move to without that property being considered another asset? I understand that in a short sale, you need to leave your home in 30 days if an offer is accepted.

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Anna M Brocco, Agent, Williston Park, NY
Sun Dec 9, 2012
Before considering the idea of purchasing, protect yourself and consult with an attorney who specializes in real estate....
1 vote
Jim Olive, Agent, Key West, FL
Mon Dec 10, 2012
Some of the strongest "retirement" investments have included real estate, so using your "retirement" money is not necessarily a bad idea, as long as you've thought about all the angles (ie: do you plan to live in this new home when you retire, in which case it might not be the best plan, because you will want to get your equity back out to live on in retirement).

I'm not sure using tax-protected funds will really protect you from your lender either way (whether on your new home or your old). Probably the best bet is to stay put (if you can) and wait/hope for the value of the home to increase, which is what they all seem to be doing right now. Not sure how long (if ever) it will take, but one way or another you're going to have to pay the piper (whether it is with the credit ding of a short sale or the lender coming after you for the amount owed after the dust settles), and the best way to minimize that cost is to wait it out as long as you can.

If you can't stay put, perhaps you can rent out the house to cover some/all of the costs while you wait out the market, but that will mean less ability to buy in the new location.

Refinancing would be a critical piece of any plan to hold the property, as you can bring your monthly costs way down, making it easier to hold on until the market rebounds. Best of luck...
0 votes
, ,
Sun Dec 9, 2012
If your husband pursues a short sale he won't be eligible for another mortgage for three years. You can your your retirement account for the down payment but if you and your husband still own the home then it will come up when your lender does their searches. You should sit down with a loan professional to see what your best options are before you make any decisions.
0 votes
Mildred Vale…, Agent, Bronx, NY
Sun Dec 9, 2012
Great answers here, Please consult with an Attorney and a Loan Officer. As your situation is a little complicated and now your home is worth less than what you currently owe, look at your options. Also pulling money from your retirement can increase your tax liablity when you do your personal tax returns.

I can recommend Mr. Steven Colon he's a great Real Estate Attorney and also knows a great deal about taxes. He also has a Tax Business, you can sit down with him and he will go everything. His contact number is 646-623-9431 and office 646-556-6620.

Best of Luck!

Millie Valentin
3928 E. Tremont Avenue
Bronx, NY 10465
email: exitwithmillie@gmail.com
0 votes
Rey Hollings…, Agent, White Plains, NY
Sun Dec 9, 2012
No property is an asset until you hold title. However your server will ask you to disclose all assets including your down payment on the new home. This may interfere with your ability to prove hardship. Consult an attorney.

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Rey Hollingsworth Falu, CDPE
0 votes
Gail Gladsto…, Agent, 11743, NY
Sun Dec 9, 2012
With the new tax laws, short sales on primary homes may have income tax on the forgiven amount; please check with your CPA.

It is very important that you speak with a mortgage broker for what you are suggesting. I highly recommend calling Dominick Sutera (he is an instructor to mortgage brokers). Dominick can be reached at (516) 249-4800 or dsutera@BankAMC.com.

Dominick can explain he entire process and what to expect. Call him for a free consultation.
0 votes
Christopher…, Agent, Tarrytown, NY
Sun Dec 9, 2012
Hi, you should really speak to your lien holder and accountant. You have to qualify for a shortsale by proving a valid hardship. The lender will tell you what is acceptable and what isn't.

0 votes
AnneMarie En…, Agent, Thornwood, NY
Sun Dec 9, 2012
Hi...you should seek professional consuling with your situation., If you are current with your payments...a short sale is probably not the right answer.

Have you looked into modifying your loan to a lower rate, as the rate is approx. 3.25% at this time.

If your bank is not willing...try a Mortgage Banker who has access to many banks rather than one.

If you would like some names of Mortgage Bankers, just give me a call and I would be glad to share them with you.

Good luck!


http http://:www.annemariecentury21.listingbook.com
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