# Home sale question



## Team Icemonkey (Jan 22, 2009)

My job's moved me north, thank God, and i'm gonna put my house on the market but it's not worth what I owe on it. I don't have the money to cover what's left over if I sold it. Can I roll what I owe into another loan on my next house? Anyone have experience with this?


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## Big Reds (Oct 14, 2007)

Doubt it.


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## WoW. (Aug 11, 2011)

Team Icemonkey said:


> My job's moved me north, thank God, and i'm gonna put my house on the market but it's not worth what I owe on it. I don't have the money to cover what's left over if I sold it. Can I roll what I owe into another loan on my next house? Anyone have experience with this?


Maybe

Talk to your lender


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## averageguy (Jan 1, 2008)

You may want to look into a short sale. I'm not an expert but I think it's better than a default on your current loan. Otherwise you would need another loan to cover the difference which is not good financially for you. Sorry to hear about another victim of the crap realestate market.


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## WoW. (Aug 11, 2011)

If he wants to buy another home, that means he has income.

What guarantees are their that the lender will even agree to a short sale much less promise not pursue a deficiency judgement?


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## Team Icemonkey (Jan 22, 2009)

Not looking to do a short sale just didn't know if I sold for alot less than I owe if I could put that into another home loan without applying for a personal loan to cover what I owe. Plan on calling my lender for options tomorrow just didn't know if anyone had any experience with something similar outside of a short sale or defaulting.


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## waterfowlhunter83 (Aug 10, 2005)

It will depend on the LTV (loan to value) of your new home loan.


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## averageguy (Jan 1, 2008)

WoW. said:


> If he wants to buy another home, that means he has income.
> 
> What guarantees are their that the lender will even agree to a short sale much less promise not pursue a deficiency judgement?


 There is no guarantee, and I stated I'm not an expert, and to look into it as an option. Why are so many people on here so quick to get an attitude and be negetive? Nothing in your post addresses the question at hand, it just attempts to berate me. If that's how you try to help, thaks so much.


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## WoW. (Aug 11, 2011)

There was no attempt to berate you, but in my PROFESSIONAL opinion, your advice to look into a short sale indicated the lack of a thorough understanding of the process.

Most people simply do NOT understand the short sale process and/or financing process and, as a result, it often gets them in trouble.

Really, nothing personal, just saying...


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## dtm4801 (Dec 19, 2005)

If your house is in good shape and you can't to sell it, look into renting it. If you post it, you'll get 100 or so people interested in it. You'll have to interview them and get references (from people, employers and other landlords), but it's better than owing money on something you no longer own. My friends have a company that takes care of any issues that come up for a small fee. If you want the name of the company, PM me and I'll get you the info. Good Luck and enjoy the North Woods. Lucky Devil!!! :lol:


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## PLUMMER47 (Dec 9, 2006)

No , you can't roll over. Unless you get a crazy steal on the new home and can mortgage 125% ( current lending offers) and then use that money to pay off the old balance. But this would be a bad idea ( financially). The best thing you should do is contact an attorney that specializes in dealing with this, as Homemortgagenegotiator.com has proven time and again, you will NEVER get a deal in your favor without professional representation. If you do a shortie, you might not be able to buy a new home, and don't forget when the bank releases you from any $$$ shortage they will send you a 1099 that you have to pay taxes on for any debt relief, and anything the bank looses out on the GOVT will reimburse them. So its to their advantage to not help you and for them to write off as much as possible. I do know that if you buy a house now and default on the other you will be held responsible and might loose both. Banks and mortgage guarantors are also not giving out loans anymore unless its your primary residence or its your only mortgage, not multiple mortgages unless its under an S-corp business loan, which is even harder to get, compared to resi loans.

What I see most often is people renting it out instead of taking a loss, then renting themselves in the new home. Or land contract. ( BUT BE VARY THOROUGH ON THESE CONTRACTS) they too want you to default by the time the market rebounds. Eveyone is trying to cut their losses since it is not economical to sell right now. Renting/leasing is at an all time high, Remember Lombardo homes back 5 years ago decreased home sales and went big into the rental / leasing market. They invested research to see what would be paying off today, and they won big. Good luck with your situation.


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## sweatyspartan (May 24, 2004)

Team Icemonkey said:


> My job's moved me north, thank God, and i'm gonna put my house on the market but it's not worth what I owe on it. I don't have the money to cover what's left over if I sold it. Can I roll what I owe into another loan on my next house? Anyone have experience with this?


Here are your options as I see them:

rent out current house - since you'll be so far away, hire a management company which typically takes 1 month rent. You can buy another house up north, but you'll have to be able to cover both house payments in order to qualify (so if your current mortgage is 1k and the new house with be 1.5k you'll have to qualify as if you were buying a home with a 2.5k payment). The days of counting that rental money as income are over unless you have a significant equity position and history as a rental

short sale - you could short sale the house potentially. The bank would have to accept it and not hold you responsible for the deficiency. Call an expert in the field and get it going (Will Elias is the farthest thing from an expert). If you need a recomendation let me know.

deed in lieu/forclosure - never a good option....makes it imposisble to buy a house in the next couple years.

In your next house up north look into the USDA rural development loans....not sure if you'll qualify but a great loan program for rural areas at 0% down


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## Fishndude (Feb 22, 2003)

Short sale will be viewed by lenders the same way foreclosure is viewed, for credit qualifying purposes. This means you might not qualify to buy a new home if you use the Short Sale option. 

On the other hand, your mortgage lender stands to lose if they don't work with you. Sometimes there are creative alternatives. Specifically, your lender might be okay with allowing you to sell the home for less than you owe on it, pay them whatever proceeds you get from the sale to reduce the amount you owe them, then release their lien, and transfer the remaining balance you owe to an un-secured closed-end personal loan. This isn't common, but it does happen. This would protect your credit, so you may qualify to purchase another home. 

And, as has been mentioned a couple times, renting your current home might be a viable option. If you go that route, I highly recommend signed lease agreements, with at least a 12 month terms. Lenders like to see that if they need to use rental income to qualify you for the purchase of another home. Also, make sure a renter pays with a traceable method - checks, money orders, electronic transfers. Cash cannot be documented, and won't be able to be used if you need to use rental income to qualify for a new mortgage.

I am not aware of any loan programs that will lend significantly more than the purchase price of a home, for a purchase transaction. VA will lend 100%, and will add the VA Funding Fee to the principal amount of the loan, so they will effectively finance slightly more than 100% of the purchase price. I don't know of any lenders who would transfer an amount owed from a previous mortgage to a new loan used to purchase a different property. I know this used to be done with autos, but I am not sure it is even done with auto financing anymore. Equity is a big deal for lenders, recently, because of all the declining markets and foreclosures they are sucking up.


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## Team Icemonkey (Jan 22, 2009)

Thanks for the info and I have alot to ponder now. If we only knew then what we know now...


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## Fishndude (Feb 22, 2003)

If you can swing two mortgage payments, and feel confident you can find reliable renters, that might be your strongest option.


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