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Is your loan owned by Fannie Mae or Freddie Mac? If so you are likely eligible to refinance (regardless of the value of your home) and reduce the payment. Maybe this would help you to rent the home out for something closer to covering the mortgage payment.
Thanks,
Jason
The HARP 2.0 guidelines take effect in the next couple of months (depending on the lender servicing your loan), and if eligible, you may be able to lower the rate on your current loan and save some…..but as far as making the negative equity disappear, your best option may be a short sale. Hard to imagine your current lender will be enthused about a principle reduction for a property that won’t be owner occ (or any prin reduction for that matter). A short sale will definitely impact your credit, but if you are able to pull one off without having any lates on your current mortgage, you should be able to do a new purchase with an FHA loan, being in mind that your credit may well be adversely effected by the short sale, depending on how it shows on your credit report. There are also potential tax consequences to a short sale depending on your state laws, definitely consult a local realtor with short sale experience if you want to go that route.
I’m one the unfortunate souls that purchased a home in Feb 2006 for 400% of what it would cost to replace the structure if it were completely destroyed. If I had to sell it today, I could only get about 45% of what I purchsed it for and would still owe about $200K above that to get clear of the home. I’ve got a credit score above 750 on all three credit ratings and I haven’t had a late payment of any of my bills in over 25 years. I’m looking at potentially being forced to relocate to another region of the country due to job migration from the Base Realignment & Closure Act. Can I roll over the outstanding value (~$200K) of my upside down mortgage into a new home purchase? What are my options? Short sale just to get out from under the mortgage doesn’t seem fair to me (either for me or the company that owns my mortgage). Bankruptcy is out of the question since I still have a job and an income. Am I looking at having to leave my family in a home for several years by themselves while I live alone since I can’t afford to make notes on two homes? I can’t even get within a $1,000 of the monthly note on my existing home if I rented it out based on it’s current estimate of value. What can I do?
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