My home is almost 100K upside down in my LTV. I want to sell it off for personal reasons but I don't know what is going to happen with the loan. Can I sell the home, make the sale a large principal payment and will that reduce my monthly payments?
2007-12-10 10:02:27 · 4 answers · asked by CL 2 in Business & Finance ➔ Renting & Real Estate
You will need to apply for a short sale. I have to say you are pretty unlikly to get one because you are so far upside down in the house.
You cannot just sell the house for less than you owe and keep paying the mortgage because the title to the house would not be cleared (ie the bank you took the loan from originally would still have a claim to the house if you were to default on the mortgage, meaning they could take it...most new owners aren't really keen on this idea and neither are their prospective lenders).
I agree if you are so far upside down in your mortgage that you are 100k over value then you should talk to a bankruptcy attorney. Even if you were to get a short sale (meaning you sell the house for less than you owe) the mortgage company will come after you for the differance and can even garnish you wages or sieze your bank accounts for the differance.
A third option is a deed in lieu...basically giving the house back to the bank (aka voluntary foreclosure). Will ruin your credit (as will a short sale, and a bankruptcy)...but you don't have a lot of choices at this point.
2007-12-10 10:45:30 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No, you can't use the proceeds from the sale a a principal reduction, because you won't own the house anymore, because when you sell the house, you have to pay off the mortgage.
If you owe more than the value of the property, you will have to find the difference for the payoff...no two ways around it. If you don't have the money, you won't be able to get the loan released for the new buyer, they won't be able to get a loan because the title can't be cleared, so no title insurance and a new lender will not close a loan without title insurance.
If you can hold on, this downward trend will eventually stop and the value of homes will again appreciate. I know it's no comfort, but you're not alone is this particular pickle.
2007-12-10 10:10:18 · answer #2 · answered by Debdeb 7 · 0⤊ 0⤋
2 issues right here. in case you've gotten sufficient money the $one thousand loss each and each month until the marketplace rebounds then you certainly've a great tax loss each and every twelve months then sell. the different element is advertising short or a deed in lieu no remember what anybody says will kill your credit no longer in user-friendly terms for a house interior the subsequent 4 years yet think of approximately automobile loans etc. Your rankings will drop by potential of one hundred fifty factors a minimum of and that takes years to get decrease back. Now in case you have the 20k plus real property itemizing expenditures and want the loss then basically record it. you do no longer ought to pay any customers remaining value in case you do no longer prefer to that's as much as you. Honoring a dedication is severe no longer in user-friendly terms in employer yet own commitments besides. The willingness to permit a million pass ought to be a hallmark to the kin approximately you besides. You requested
2016-10-11 00:22:58 · answer #3 · answered by jacobson 4 · 0⤊ 0⤋
If you are really $100,000 upside down, you better talk to a bankruptcy attorney very soon.
2007-12-10 10:32:44 · answer #4 · answered by LUCKY 4 · 0⤊ 0⤋