Sunday, August 22, 2010

How do you unload a house with an underwater mortgage?

Legally of course.How do you unload a house with an underwater mortgage?
Because you can't sell without the lien being released you basically have two main options.





Fund the difference between sale price and amount owed yourself OR your lender has to agree to take less than the amount owed. There is something called a short sale (you are short the funds to pay off the loan completely) that the bank has to agree to because they are taking a loss on the loan. If they don't agree to it (you have assets, you make enough to afford it, etc.) then you would have to let it go to foreclosure.





Short sales and foreclosures are legal, they just devastate your credit rating!





good luck!How do you unload a house with an underwater mortgage?
If you can no longer make your mortgage payments and want to avoid a foreclosure then a short sale is the answer. The lender will have to agree to let you sell the house for less than what is owed. You will have to prove hardship.





Short sales have less impact on your credit.
you have to bring cash to closing or you have to ask your lender to forgive the shortfall. this is called a short sale.

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