Trying to decide if we should sell our house - which we would have to do by owner, and come to the table with about $15K and buy a fixer upper.

Asked by cecilia.robinson68, Newtown, CT Thu Aug 1, 2013

we are mid-40s, want to downsize and to a 15 year mortgage, which will, alone, save us what we had to put out at closing. Currently have 28 years left on a 30 year after we refinanced. We can't afford to go 15 years which increases our payment by $300.00 per month on our current house. Owe about $190K. Can get a foreclosure and fix it up for about $135K after renovations.

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Ron Thomas, Agent, Fresno, CA
Thu Aug 1, 2013
Trying to parce this out:
You want to sell, or not.
You want to save the Realtor's commission,
you think that you can sell it for the same amount, as if you LISTED it.
You want to refinance, to a 15 years loan,
But you can't do a refinance,
mostly because you are underwater.
(you also cannot afford the costs of refinancing)
and you cannot afford the costs of fixing-up.

Have you thought about just sending an extra $100 per month and telling them to put it toward the principle?
1 vote
Jonathan Rai…, Agent, Macon, GA
Sat Aug 3, 2013
The short sale option may be a good one, but you generally need to be behind on payments to qualify, and as Michael mentioned, your credit will be severely impacted for years. That impact will hurt more than just your next home purchase, but any credit application and often interest rates on revolving debts.

Have you looked at a HARP refinance? This is only useful if you keep the house, but you could possibly rent the home for a while to pay down the mortgage. Just keep in mind with being a landlord, you might have big expenses still, like a roof or A/C repair. You may already have good interest rates since you recently refinanced, so HARP may not work for your situation, but worth a look.

Doing a sale by owner isn't always a good financial decision. Often, you can obtain more for your house selling with an agent than by owner, and it often exceeds the cost of the commissions. Also, if you're in Newtown now and your house is in Georgia (assuming from your location setting), you would have to rely on relatives/friends to show the home. Furthermore, if you did a short sale, then the lender would require a Realtor to list the house, but the lender usually pays the fees.

In generally, I would recommend against a short sale. It sounds like you need to talk through your situation with at least a local Realtor, and possibly a mortgage lender to get personalized advice.
0 votes
Michael Hamm…, Agent, Suwanee, GA
Thu Aug 1, 2013
Eli makes a good point. A Short Sale might possibly be an option, but you won't likely be buying anything else for a couple of years or more afterwards as it will almost always negatively affect your credit. BTW, make sure HR 3648 gets thoroughly explained because if it's not renewed in 2014 by Congress, you could be on the hook for paying taxes on the shorted amount..
0 votes
Eli Givoni-S…, , Boca Raton, FL
Thu Aug 1, 2013
Have you considered doing a short sale? This is for homeowners who are upside down on their mortgage. Feel free to give us a call. We would be happy to explain the process to you. Our services are FREE for homeowners. We have been successful in getting homeowners off the hook for the deficiency, as well as, getting homeowners up to $23,000 in relocation assistance.

Eli Givoni, Director
Short Sale Department, LLC

MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes
Michael Hamm…, Agent, Suwanee, GA
Thu Aug 1, 2013
Like with most real property questions, Cecilia, the answer is usually...It depends. For example, what is your house currently worth? Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
0 votes
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