Discuss second mortgages with other members of our forum.
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Ja W --> Did you know that you could not post topics questioning Barack Obama on his website? [3 replies]
trer --> How can we slow down our culture of consumerism? [1 replies]
michael s --> Umm, Do you drink this much Coffee?? [13 replies]
looking for $$$$ --> Does anyone know how Third Party Tracers (processors for Mortgage Refunds) are paid? [0 replies]
william w --> Will a second morgtage company pay off a higher 1st. mortgage? [4 replies]
Wooly CCSBSS --> Are all MPs just property developers? Get the Mortgage paid on the second home, get it all fitted out with? [7 replies]
roving_poet --> How do guys really feel about dating moms? [1 replies]
Christina W --> I am stuck with a lien on my house that I am not entitled to pay. HELP!!? [4 replies]
Jason B --> My first and second mortgage is more than my house is worth.? [6 replies]
Ja W --> Did you know that you could not post topics questioning Barack Obama on his website? [3 replies]
My first and second mortgage is more than my house is worth.?
Posted by godged at: 2008-03-16 07:58:08
My first and second mortgage is more than my house is worth. I owe about $128k combined my house will appraise for 129 than means I am short to pay my real estate agent. What can I do? That means I must pay out of pocketand forget about paying closing cost for the buyer I cant afford it. I want to get rid of this house soon, its been of the market for 6 months now and I cant drop the price due to the second mortgage being so high. If I never would of gotten that stupid loan I could have sold this place months ago. Any advice?
Posted by MrInvestor at: 2008-03-16 08:07:15
You either hold onto the house, you have to come up with any shortfall due at closing or you try to get the lender(s) to agree to a short sale.
Posted by Real Estate Guy at: 2008-03-16 08:18:09
I wish I had an easy answer for you. I am wondering what the houses nearby are doing. Are they selling, are they vacant, or is the area stable? If not, then what you most likely will be doing is what the Japanese firm Mitsubishi did in 1992. They bought Rockefeller Center in N.Y. for 2 bil. in 1989, only to see it fall in value to 1.2 bil by 1991. They just abandoned it and then it went up for auction. Today, it's worth a lot more. The government wants to help people like you, but the stimulus package won't be giving you tens of thousands of dollars to pay off your mortgage. Your problem is now being shared by at least two million other Americans, and even other countries are now showing signs of this over extending of credit abuses of the past few years. Like I said, there is no easy answer. If you won the Lottery, then that would solve your problem. If the crisis doesn't find a solution soon, it could affect a lot more homeowners. It could literally cascade! That is why the government is trying everything, and their tricks won't cut it. because ordinary people like us don't earn enough on jobs to support high mortgages. Very sorry for your dilemma
Posted by jwarburton at: 2008-03-16 08:27:10
Hi Jason, this is a situation where a lender may be interested in doing a 'short sale'. This is where the lender accepts less than is owed due to a reduction in the market value. This allows the lender to avoid a foreclosure, and the owner to get out from under a crushing debt. There are companies that negotiate with the lender, as they can't legally negotiate with the owner. Contact me off line and I can suggest one for you.
Posted by Leo Lion at: 2008-03-16 08:29:48
Your post tells a lot. First it's NOT worth less then you owe (owe 128 and worth 129). So you are lucky that your house actually didn't lose value. 2nd you said you "want" to sell, not that you "need" to sell. There is a difference. You may need to ride out the market. 3rd. If you had put down 20%, the numbers today would have been the same and you would still net (or lose) the same. The only difference is that you wouldn't have to write a check at settlement, you would have received less OF YOUR OWN MONEY (the downpayment) back. So, what is the difference of writing a check at settlement to cover your selling expenses vs getting less of your downpayment back? The bottom line is the same?
Posted by src50 at: 2008-03-16 08:51:14
You could try a Flat Fee listing. With this you only have to pay commission to the buyers agent. Also you need to make it easy to buy. In this market your niche is to sell it on a Lease Option to a tenant/buyer if they dont have much to put down OR with a larger down you can sell with Owner Financing. The housing market is down in most areas but it's more about the inability to get a loan than the idea that there aren't any buyers. Get Creative. Short Sales can work if you have a compelling reason, other than you don't want out of pocket costs anymore, for the bank to do one.
Posted by Jason B at: 2008-03-16 09:48:42
The buyer is obligated to pay closing costs, it would certainly improve your situation if you could afford to contribute to their closing costs, but you can't, so don't dwell on it. I have to point out the obvious, you signed up for this "stupid loan" so let's call it what it is and don't assign blame. Ask your Realtor to contact the lender about a short sale. Other than waiting the market out, it is basically your only option at this point.