if i owe 100,000 on my home and sell for 80,000. is there a way to add the remainder to a new home loan?

Answer 1

No because a home loan is secured against the value of the home, and the new loan usually is a maximum loan to value. Theoretically, if your new loan was a lower percentage of the value of the home, for example, you only needed 60% loan to value, then you might be able to just borrow more (which would still be secured against the new home) and really keep the cash you would otherwise use as a downpayment to pay off the old house. But that seems unlikely.

What you CAN do if the old house is worth less than you paid is to get that lender to agree to a short sale on the house. This means they will accept whatever you can sell it for as payment in full so you don't owe the other 20K, however this will impact your credit and thus may impact your attempts to get a new loan.

I have to wonder how you managed to buy so poorly as to have a house that is 20% underwater? Also buying ANY house with 100% financing is very risky to both owner and lender and should be outlawed. That recent trend is going to be increasing foreclosure rates in the coming years.

Answer 2

The process depends on if you have a (1) second property that you want to roll to or if (2) you want to take a credit loan for the remainder.

In the first case, you can do this fairly easy if your second property has equity ($20K or more). I offer a 2nd home equity loan with no closing cost and can help you do this.

In the second case, you need to get the credit loan first before you sell the property. You will have to use the $20K to pay off the portion of the house that the sell will not cover. For this, go to your local bank or credit union and apply. If you have credit cards, you should be able to get this faily easy.

You will get a much better interest rate if you choose the first case. Your probley end up with a rate less than 10%. In the second case you should be prepared to pay about 12% interest or more.

I can help you and run the numbers. I need more information. Please go to my website and complete an application and I will call, email, FAX or mail your results with the best solution (lowest interest rates) and payments.

Answer 3

I'm not a mortgage person, but one thing you can do is find someone to underwrite your new loan before you sell and take out a home equity line to pay off the balance of the old loan. (In other words, you are very undesireable to the lenders). Yyou'd probably have to get into a house that was ~ $20k below market value and still have to come up with the closing costs to even have half a chance. Good luck. You have to look for a program that will loan up to 100 or 110% loan to value to have a better shot, but again you're going to be paying higher interest rates and PMI for such loans.

Answer 4

No your £100,000 must be paid back at completion. You must borrow the other £20,000 to be paid to the lender at completion.

Answer 5

no, you cant. you have to have the mortgage satisified- the lien has to be released- its not like buying a car. im a realtor. hope this helps. you can do a short sale if your bank allows it.

Answer 6

Would like to know more about this too

Answer 7

Have your agent do a short sale.

Regards

Answer 8

that is questionable there are in fact several potential answers to the question

Answer 9

Yes. Lenders will love you, you will be "upside-down"

Answer 10

Unfortunately, no.