we are $200k underwater and want to move. not behind but mortgage is probly 38% of income. fixed rate, int. only. long term prob. how do we get out?

Asked by Oakark71, 94606 Tue Oct 26, 2010

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13
jo, , Hollywood Hills, Los Angeles, CA
Thu Feb 17, 2011
Oak, you asked this question back in Oct. 2010...How are things going? Did you get out?
1 vote
, ,
Thu Aug 15, 2013
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes
Antoine Pirs…, Agent, Oakland, CA
Thu Feb 17, 2011
I have answered it before. You need to do the numbers first, and then take into account if that option works for you or not. You can make an appointment to dicuss details. Thanks.
Web Reference:  http://antoinepirson.com
0 votes
Suz A, Agent, Longmont, CO
Wed Feb 16, 2011
**** UPDATE ****

Hello Oakark71,

Hope you are comfortable in a new situation by now.

If not, you might want to try a mortgage modification.

List of resources:

https://www.naca.com/index_main.jsp

http://www.foreclosurefish.com/modification.htm

http://www.naag.org/federal-response-to-the-mortgage-foreclo…

http://www.youtube.com/watch?v=FyvCMZWomnU&feature=playe…

http://online.wsj.com/article/SB1000142405274870452650457563…

SuZ,
PML property movers of Longmont, CO
Web Reference:  http://www.suzrealestate.com
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Wed Oct 27, 2010
Hello Oakark71,

You have a few solutions you can try...Not knowing what your financial situation is....
1)You can leave the home by conducting a short sale (which will be the least damaging to your credit)
2)You can call bank and ask for a deed in lieu of foreclosure ..
3)You can simply walk away, allow a foreclosure to happen but please keep in mind that the lender may come after you for a deficiency judgement in this case. The other 2 options keep you a little bit safer.

At lastly, make sure you work with a knowledgable agent to assist you. Feel free to call or email me if you need any further information :)
0 votes
Antoine Pirs…, Agent, Oakland, CA
Wed Oct 27, 2010
Hello Oakark 71:
Here is what you need to do to find out what would possibly could be the best solution in a bad situation.
First, we need to sit down and calculate your financial situations in order to compare with other solutions. Once we know the financial exposure,we can compare to the impact of short sales, rent out current property, deed in lieu, or foreclose. The only way to know for sure is to make the calcuations for all scenario's. You need a broker with that kind of knowldge and or experience.
Call me when ready.
Antoine
0 votes
Gina Odom, Agent, Santa Cruz, CA
Wed Oct 27, 2010
Have you considered a short sale? I have successfully closed 4 short sales this year. Let's sit down and talk about your options and then you can make the best decision for you and your family. - Gina at ginaodom@gmail.com
0 votes
dave, Agent, Charlotte, NC
Wed Oct 27, 2010
Oakark,

You are in a difficult situation that many americans are facing right now. The fact that you are aware you owe approximately $200,000 more than the house is worth is a good start. You may have soem options. first, soem of the recommendations is to short sale on yoru home. Well to qualify for a short sale you need to prove a legitimate hardship as to why the bank should take the loss on your home. Viable hardships are loss if job, illness, moving for sake fo a job outisde of the area you live in now.... Just becuase you want to get out does not mean they are going to let you out. If you fulfill the requiremetns for s short sale that is probably your best alternative right now.

Second option is to let the home go back to the bank. it will give you a devasting hit to your credit and prohibit you from purchasing a home for at least seven years. This is NOT an option that I recommend to anyone.

Third, is to stay where you are and ride out the wave until the market gets more stable. Though if you are going to do this way; look into refinancing your home. You may be able to refinace the home without an apprasial.

Your last option would be to find a renter for the house. With so many people losing homes today there are peopel lookign for some nice rental homes. But, check the local market and make sure what you woudl be asking is in line with the market is bearing at this time.
Web Reference:  http://www.davedicecco.com
0 votes
Gilbert Rich…, , Santa Clara County, CA
Wed Oct 27, 2010
I agree with Pacita. A short sale is probably your best option
0 votes
Pacita Dimac…, Agent, Oakland, CA
Tue Oct 26, 2010
Oakark, Sorry to hear about your situation.

Since you said you want to move, and you want to get out, one can surmise that you don't want to own this property anymore, is that correct?

If you're $200K underwater, are you saying your property is worth $200K less and/or that you owe a lot more (as some people ended up when they refinanced a few times and withdrew their equity)....? You said you're not behind the mortgage, How are you doing with regards to other financial obligations (credit cards, student loans, etc). Are you behind your payments on anything? Are there liens filed against your property?

If you're tried to modify your loan, but your lender said no, you may be a candidate to short sell your property. It's certainly an option worth exploring to preserve as much of your credit rating as possible.

To qualify for a short sale, the bank would want to know the reasons for your hardship which may be a number of things: loss of job, reduced income, relocation, drop in market value, death, divorce, increased expenses (as when interest rate re-sets), etc.

You can also see a credit counselor to see how you can better manage your finances.
0 votes
Lisa Cartola…, Agent, Oakland, CA
Tue Oct 26, 2010
Hello,

You are definitely not alone in this situation. Have you considered a loan modification to see if you might be able to lower your payments but stay in the house?

If that is not an option, looking at a short sale (selling for less than you owe) would be the next option to consider. Short sales are not always clear cut and there is definitely a process involved in listing and successfully navigating a short sale. There are several different variables at play :

1) Is the listing agent you decide to work with knowledgeable about short sales and the methodologies involved in listing a short sale?

2) Do you have 1 or 2 loans on the property?

3) Who are the lender(s)?

4) How short would the short sale really be?

5) Talking with a CPA to help you determine the tax implications of a short sale so you have a full understanding of what potential tax implications there could be as the result of a short sale.

There are definitely several things that would need to be determined and outlined before moving forward with either a loan modification or a short sale. It can be a complicated process at times but with the right assistance and guidance you can determine the best path for you.

If you have any other questions, you can give me a call or email.

Hope this helps!

Lisa Cartolano
Web Reference:  http://www.LisaCartolano.com
0 votes
Matthew Lars…, Agent, Oakland, CA
Tue Oct 26, 2010
The only advise, in my opinion, is to consult with a CPA and an attorney in order to fully understand your options. There are several options that you can look into doing but understanding them fully before you do anything is a must. This situation involves both legal and tax advise and these are the only professionals who can give advise in those situations. Let me know how I can help.
0 votes
Christy Brock, Agent, Alameda, CA
Tue Oct 26, 2010
Your lender will most likely let you short sell but will probably require a contribution. How much of a contribution will depend on the assets you show and whether or not you are behind on other debt such as credit cards.
0 votes
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