2007-02-17 07:28:18 · 8 answers · asked by JOSIE 1 in Business & Finance ➔ Personal Finance
Ouch! Check with a local real property manager - it could be that a 'rent with option to buy' will help you out. If you can get a renter who will pay enough to make your mortgage payments then perhaps the value of the property will grow over time? Or, sell quick, make up the difference before the situation gets worse. Or . . . check with your lender to see if they can work with you to reduce the interest rate or work out a repayment schedule for the amount owing. You don't want to ruin your credit. Check with a real property attorney to see what the best options are for you in the state in which you live. Good luck.
2007-02-17 07:33:58 · answer #1 · answered by Santal 3 · 1⤊ 0⤋
When you sell it, you have to make up the difference between the selling price and what is owed.
Usually the real estate agents guard against this sort of thing. The sale can't close if the money isn't there, so they screen the process to be sure it can be completed. The agents need to get their cut too.
I would talk to the real estate agent before you list to find out where you're break-even point is. They are there to help you, so take advantage of them.
Also, you may be able to improve the property for little cost. This could include painting the exterior and interior. You could also really clean the carpet then put area rugs to cover up less then desirable areas in the carpet.
You can also price the property for more than the value, and then offer allowances for new carpet and appliances. This is a way for someone to move into a property and cover their renovations.
It would work this way. Say the value of the property is $50,000, but you need $52,000 out of the property. New carpet would cost you $4,000 and appliances would cost you another $1,000. This would raise your investment to $55,000. You can then list the property for $60,000 with a $5,000 carpet and appliance allowance. You can state this in the listing and limit the amount in the contract.
You don't spend anything till the contract is signed. Actually, the amount gets remitted to the purchaser at close, and they take care of the appliances and carpet themselves, usually. Sometimes the mortgage holder requires the improvements be done before they release the amount reserved for those items.
Good Luck
2007-02-17 15:36:03 · answer #2 · answered by A_Kansan 4 · 0⤊ 0⤋
If you don't HAVE to sell it now, don't. Property values go up and down in cycles, but almost always up over the long term, if the house is kept in good condition and the neighborhood doesn't change drastically. If you can hold on to it a few more years, not only will the value go up, you will have paid off a little more of the loan, hopefully to the point where the house is worth more than the loan. If you do this and can afford it, pay a little more than just your regular payments, making sure to indicate the extra if to be applied to the principal. If you don't indicate it, they may apply it to an escrow account or interest.
If you have to sell it now, you will still be required to pay the difference. If things are really bad financially for you, the bank may accept as full payment whatever you can sell it for, but the amount they write off is income for you that you will have to pay taxes on.
2007-02-17 15:49:18 · answer #3 · answered by Brian G 6 · 0⤊ 0⤋
The short answer is you can't.
Unless you want to ruin your credit for the next 7 to 10 years.
Can you rent a room and use that money to pay extra on your mortgage for a year or so to try and get the loan amount down?
Good luck and know that you are not the only person in this situation right now.
2007-02-17 15:43:15 · answer #4 · answered by Gem 7 · 0⤊ 0⤋
Other than renting it out, ask the mortgage broker who forgot to tell you that homes depreciate after the market bursts.
2007-02-17 18:25:38 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Why would you want to get rid of it? I will buy it from you, at 80% of the appraised value. After you sell it to me you will be homeless and have the rest of the money due to pay.
It is wiser to pay the bills each day, and things will get better. You can E-mail me, key on my icon, I can tell you how to add $1,000 a month to your income. ALL WITHOUT SPENDING A DIME, (you will have to reinvest the money you make).
2007-02-17 15:37:19 · answer #6 · answered by whatevit 5 · 0⤊ 2⤋
You can sell your home and take a capital loss.
2007-02-21 00:15:19 · answer #7 · answered by annazzz1966 6 · 0⤊ 0⤋
rent it out... or take a loss and declare bankruptcy. poor you.
2007-02-17 15:33:46 · answer #8 · answered by Anonymous · 1⤊ 0⤋