Upside down on my mortgage.

[Orange Blazer]

I have a job offer for a significant promotion that would require me to move. When inquiring about selling my current home I was told I am basically $15-20,000 upside down on my mortgage. What are some options for people in my situation? I am not one to just walk away from it, I don't think that is the right thing to do. Thoughts?

[Lexvol]

Who told you that you were upside down? I would get more than one appraisal. If you can't sell it for more than what you owe, then just try to talk the bank into a short sale.

http://en.wikipedia.org/wiki/Short_sale_(real_estate)

[Orange Blazer]

Originally Posted by Lexvol

Who told you that you were upside down? I would get more than one appraisal. If you can't sell it for more than what you owe, then just try to talk the bank into a short sale.

http://en.wikipedia.org/wiki/Short_sale_(real_estate)

I have gotten 3 different appraisals. I have talked about a short sale, and it is looking like my best option. How bad of a credit score hit do you likely take is my biggest concern. I have worked hard to have good credit.

[Lexvol]

Originally Posted by Orange Blazer

I have gotten 3 different appraisals. I have talked about a short sale, and it is looking like my best option. How bad of a credit score hit do you likely take is my biggest concern. I have worked hard to have good credit.

You may take a hit on your credit. The real issue that you have is buying when you move to Charlotte.

If you have a mortgage officer that you have worked with over time, I would talk to them about the credit issue. If you don't, it is a good idea to establish a relationship with a mortgage professional.

[Lexvol]

Out of curiosity, can you rent the house out until the market swings a little bit in your favor?

[Orange Blazer]

Originally Posted by Lexvol

You may take a hit on your credit. The real issue that you have is buying when you move to Charlotte.

If you have a mortgage officer that you have worked with over time, I would talk to them about the credit issue. If you don't, it is a good idea to establish a relationship with a mortgage professional.

I have a guy here in Memphis that I used to refinance my current home who I am friends with. I am waiting on him to call me back. This is very stressful, this is a promotion I cannot pass up, but it may hurt me in the long run.

[Spartacavolus]

Just get out of Memphis if that's your plan. I found that most of my problems worked themselves out after I left.

[Orange Blazer]

Originally Posted by Spartacavolus

Just get out of Memphis if that's your plan. I found that most of my problems worked themselves out after I left.

That is the game plan. I have Charlotte and Knoxville now as options.

[Thrasher865]

Originally Posted by Lexvol

Out of curiosity, can you rent the house out until the market swings a little bit in your favor?

If he were to do this, he would have to find a place to rent after the move. His rental income would not be claimable as income in the mortgage application until at least a year of stable rental income. So, he wouldn't qualify for a mortgage unless this was a very very substantial raise.

[Orange Blazer]

Originally Posted by Lexvol

Out of curiosity, can you rent the house out until the market swings a little bit in your favor?

I looked into to that but here are some details to my situation. My neighbor across the street lost his wife 3 months ago and wasn't the beneficiary to her life insurance so he is walking away form his mortgage because he can't pay it now. The bank told him he had about a year before they foreclosed on him. A house down the street from me is short selling for $100,000. I owe $145,000 on my home. The best appraisal I have gotten is $130,000 for my home. To sell it fast for my family to move for this job they are recommending I list at $120,000. There are 2 other short sells and 2 other foreclosures in my neighborhood that have closed in the last year. I don't see the market ever swinging in my favor unfortunately.

[Orange Blazer]

Originally Posted by Thrasher865

If he were to do this, he would have to find a place to rent after the move. His rental income would not be claimable as income in the mortgage application until at least a year of stable rental income. So, he wouldn't qualify for a mortgage unless this was a very very substantial raise.

Yes, that is why renting it out is not an option for me. The raise is about $15,000-20,000 a year. Not enough to pay two mortgages for sure. I think a short sale is my best bet.

[Spartacavolus]

Originally Posted by Orange Blazer

I looked into to that but here are some details to my situation. My neighbor across the street lost his wife 3 months ago and wasn't the beneficiary to her life insurance so he is walking away form his mortgage because he can't pay it now. The bank told him he had about a year before they foreclosed on him. A house down the street from me is short selling for $100,000. I owe $145,000 on my home. The best appraisal I have gotten is $130,000 for my home. To sell it fast for my family to move for this job they are recommending I list at $120,000. There are 2 other short sells and 2 other foreclosures in my neighborhood that have closed in the last year. I don't see the market ever swinging in my favor unfortunately.

Sounds like the neighborhood where I grew up near Ridgeway. 4 br, 2.5 brick, one level home, @ 2200 sq feet and my mom can't get $120k for it.

[Orange Blazer]

Originally Posted by Spartacavolus

Sounds like the neighborhood where I grew up near Ridgeway. 4 br, 2.5 brick, one level home, @ 2200 sq feet and my mom can't get $120k for it.

Yea it sucks. Mine is about 1600 sq feet, and I will probably have to short sell for around $110,000. Sucks, but looks like it's my best option.

[golfballs]

Rent it

[n_huffhines]

Originally Posted by Orange Blazer

I have gotten 3 different appraisals. I have talked about a short sale, and it is looking like my best option. How bad of a credit score hit do you likely take is my biggest concern. I have worked hard to have good credit.

If you do end up having to take the hit, I've heard that some of those credit repair companies can do wonders for a couple thousand dollars fee.