Options for selling house if upside down on loan

Re: Options for selling house if upside down on loan

• CuriousKiddosMama mod

  

  February 2014

  Unless you can come up with the money, I think you are stuck. Have you had a realtor come by to check out the place to make sure your appraisal/what you could sell for is correct? They may be able to suggest improvements or something that could raise the value of your house more than what the improvement cost. Pretty much any option to sell a house while upside down would hurt your credit (foreclosure and short sale are the only 2 I know). That would leave you with living there, or the possibly worse option of moving and renting out your current house. I say this is the worse option because if you can't find a renter or end up with a couple months without a renter in between you would then be paying 2 mortgage payments.
  
  How far upside down are you? Is there a way for you to catch up in a couple years and move then? If you have the time to work a second job or something that could boost your income to help pay down the loan quicker?
  

  

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• Sisugal member

  

  February 2014

  And what were you planning to use as a down payment for the new house? Zero down loans no longer exist.
  By how much are you upside down?  Can you get second PT jobs to get the needed cash to make up the difference --- as well as the closing costs etc.
  

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• mssm2012 member

  

  February 2014

  A short sale, foreclosure, deed in lieu, or any sort of "forgiveness" will hurt your credit.
  
  You can apply for a personal loan to cover the difference, so you could pay the loan in full at close and make payments on the amount of the personal loan.
  
  You can try to rent out the house instead of selling, and wait until property values come up or you can save up more money.
  
  How do you plan to afford a down payment (or deposit) on a new place?

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