By Admin on Jan 5, 2009 in Renting & Real Estate
Lindsey J asked:
My fiance and I bought a house for 429500 in November, he is thinking about taking a job in another state. We put no money down on the house and the house has gone down in value. Because we could barely afford the payments we have NO savings. What would happen to our mortgage if we had to sell at a lower price. Niether of us has good credit, and we realize that buying the house to begin with was bad, our realtor insisted we would be fine… stupid us listened to her… What can we do? Are we stuck?
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My fiance and I bought a house for 429500 in November, he is thinking about taking a job in another state. We put no money down on the house and the house has gone down in value. Because we could barely afford the payments we have NO savings. What would happen to our mortgage if we had to sell at a lower price. Niether of us has good credit, and we realize that buying the house to begin with was bad, our realtor insisted we would be fine… stupid us listened to her… What can we do? Are we stuck?
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You would have to pay the difference!
You might talk them into accepting a short sale, but that is iffy.
Rick B | Jan 7, 2009 | Reply
You could be in a pickle if you can’t at least cover the mortgage balance. It would mean going to closing with money to pay off the balance.
DJ B | Jan 8, 2009 | Reply
You need to take the money difference with
you to the mortgage table.
kyle.keyes | Jan 10, 2009 | Reply
Welcome to the world of renting.
You have no choice, you must continue making payments until you have equity. Find a renter for the house. Continue making payments as you do now
Take the rental money you receive and rent a home at the new job. It could work out good. Rent a cheep apartment for a while to get ahead and let the renter in your house pay down the mortgage.
Once you have a tenant renting your house you will not be in stress financially and can take your time to work things out.
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The value of the house did not go down, you payed too much for it.
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You can not sell the house. The mortgage company will not release the lien on the house for closing if it is not payed off on full. There can be no sale unless you can raise the difference and bring it to the closing as cash. You can not do that so you options are loose the house to foreclosure or keep paying. If you must more, you will need to find a renter.
There is no solution that involves selling the house no one can get a loan on your house while you have a loan on it.
No closing could ever go through. All the people here talking about you selling the house are talking out their Arrases this can not be done sorry.
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Lawyers can not make a criminal act legal. You can not sell someone a home if the bank can not release it.
You are broke already bringing an experienced broaker into the deal will cost another 6 pecent and yu are already in the whole on this deal. A lawyer will want $5,000 up front and more later. Just rent the house and move into an apartment for a while.
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packinrat | Jan 10, 2009 | Reply
You’ll have to pay the bank the difference between the sales prices (minus commission) and the balance. Next time don’t take advice from a salesperson, they will screw you everytime.
mntndo | Jan 11, 2009 | Reply
You will still have to pay your mortgage off. At least you will have something from what you got on the house to help you pay it off.
luminosa | Jan 11, 2009 | Reply
You will owe the difference between what you sell it for and the balance on the mortgage . ( & it sounds like you do NOT have that extra $$$$ )
If you take the job in another state , and let this one go into foreclosure , you will probably Not be able to buy a house again for years .
If this new job is a guaranteed good thing with promotions and all , it may be worth the sacrifice
( You’ll be living in rentals ) .
But , if this is not the most excellent job ever , you maybe should stick it out where you are at .
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kate | Jan 13, 2009 | Reply
First, advertise it yourself. No room for a realtor fee here.. Spruce it, hold open house. If you get an offer, go with it to your mortgage company. Take comparison info you have found on
Do the best you can to sell it, and let the mortgage company know what you are doing. Try to work with them.
The best you can do is ALL YOU CAN DO. All this would be taken into consideration at the time you apply for another mortgage. Keep every effort documented. Good luck to you.
jilly | Jan 15, 2009 | Reply
You would have to make up the difference…..but, why has the house declined in value. You should at least be able to sell it for what you paid for it and break even.
VEGAS VIXEN | Jan 15, 2009 | Reply
If you don’t have the funds to cover the difference between the payoff and the sales price, you will need to contact your lender’s “Loss Mitigation” or “Home Owner Retention” department, explain your situation and ask them to consider either a Deed-In-Lieu (you deed the home back to them) or ask them if they’ll accept less than the payoff balance.
Since few lenders want more foreclosures in their portfolio (this hurts there ability to borrow more funds), they’ll likely work something out with you.
Good luck.
liveinaustin | Jan 17, 2009 | Reply
My husband and I were in this mess ouselves just 4 short months ago. It will be hard and VERY stressfull but you need to get an experienced broker/realtor and a good lawyer if needed to negotiate something called a short sale. We saved over $40k on our deal and walked away without our credit being totally ruined. It’s still not great but we don’t have a forelcosure on our hands. Your mortgage company is going to pull every trick in the book on you and will stonewall you and try everything they can to scare you but you must not forget that they really do not want your property they want money and if they know what’s good for them they will take whatever deal they can get. We owed our lawyer almost $3k form previously trying to sue them for breach of FDCPA laws and trying to negotiate a deed in lieu of foreclosure and we were able to ge those fees negotiated and paid as part of the short sale. Also Lawyers if you owe them will sometimes setlle your bill for less than is owed as long as it’s reasonable. Please feel free to contact me if you have further questions or just need someone to talk to. I wish you luck it was the hardest position I have ever been in in my life and I know what you are going through all too well.
dizzygrltoo | Jan 18, 2009 | Reply
The new buyers would want to have a clear title, that is one of the reasons you use a lawyer for closing. Don`t try to keep any info from potential buyers, it can come back and bite you later. Discuss this with your mortgage lender and see what your options are. Unless they settle for a less payoff on your original mortgage, your probably stuck with the payments.
Jim | Jan 20, 2009 | Reply
If you don’t have the difference to bring to the closing table to close the loan, then you can’t sell the house.
Your only other option is a Deed in Lieu, but that could render you unable to rent and it will destroy your credit history for a minimum of four years.
Mary B | Jan 23, 2009 | Reply
Well, you are responsible for the mortgage and payment. The bank had you sign a note promising to pay the note back.. If you sell at a loss to an individual, then you will have to come to closing with the difference in the money. If you can get the bank to let you “short sell” the property and show you are a hardship, find a buyer who has the cash and get bank approval, it can save your credit and let you walk away from this. It is an intricate process and one that requires knowledge. Look at your area and see if you have a real estate investors association. They have investors who do these “short sales” and may have an investor who would want your property. I am sorry that your realtor made you feel things were ok. They probably were when he/she said that, but ultimately, it is totally YOUR responsiblity, not the realtor, the bank, anyone but you to make sure you were aware of the process and what you were doing. I am sorry that this has happened! I hope you can find an investor to help you.
dianaparisian | Jan 25, 2009 | Reply
Have you considered staying put? Why does he have to move?
It seems that moving would just be one in a series of bad decisions the two of you have made.
rochelletherealtor | Jan 26, 2009 | Reply