Ok please read this whole thing as I am really stuck and don't know what to do or at this point who to even ask.

I purchased a home in 2005 in AZ for 375K. I thought i was signing up for a decent mortgage a 3 yr ARM 80/20 300K for the first and 75K for the second which is a line of credit on the house. Looking back this was probably not a good move, but it spilt milk at this point.

I now want to move home, as my roomates have moved away and I am in a large house alone and soon will struggle to make my payments. I am from PA orginally and fiance and family all live there.

Problem is my house will not sell for 375, it will not even appraise for more than 340. I currently have it listed for 329 and still not offers. Great house with many features, just a horrible market.

I have been making all my payments and doing everything i'm supposed to do for 3 yrs but now i am stuck? i am not the type to miss payments so i haven't thus far, but soon my work hours will be a bit less and i want to move, but if my house sells now i woln't even be able to close the deal because i can't pay off the money I owe in difference of the purchase price and mortgage?

I don't think I am a short sale canidate as i am not in any real hardship but I can't live like this any more? Renting isn't really an option as my mortgage is over 2k a month and you can rent similar places for much less than that right now?

Does anyone out there have any advice PLEASE?

Can't you arrange a loan for the difference on what you owe and what the house sells for. Seems if the two original loans are paid off using the proceeds of sale and the new loan, you'd have a smaller paym't to deal with and you could move on. You'd have to work to pay most of it off b4 buying again. This is not an uncommon situation these days.

Can you refinance and wait to move? Find renters?

Look for more renters, wait it out.

I recommend you talk to your current lender and see if they can work with you to work something out.

I agree with Gail. It does indeed sound like you are a candidate for short sale, having lost your paying roommates, and will be cut back on your hours.

Call first, and try to talk to "someone" in power at your lender. Who you talk to, ask to speak to their supervisor.

Explain based on the above, you feel like you are a responsible person, however circumstances
have put you in dire straights...which is where you seem to be headed. However as long as you are making payments, and trying to be the responsible guy, you are going to have to convince them how hard it is to do so.. and to please consider a short sale (reducing the mortgage amount), so your Realtor can get the home sold.

Equity comes with years, which unfortunately alot of folks were cheated out of due to the mortgage crisis, and resulting bad market.

Good Luck to you.

P.S. Many cities and county government offices now have a mortgage financial crisis office, where they help residents with negotiations with their lender..check it out..

This message has been edited. Last edited by: real estate lady,

I agree with Meishcha. Get new renters to share the house and wait it out.

In thinking about this further..Yes, more renters is a good plan... and I think maybe the better solution for now. However I would still call the lender and see if the will extend your fixed rate for a number of years. I have knowledge that this has been a solution to some.

This message has been edited. Last edited by: real estate lady,

I'm not sure renters is a great idea?
I will be losing probably about $1000 a month at least in the difference between my mortgage and the rent? And if i am moving away i will be stuck with a home, in another state, that I now have renters in that I want to try and sell while i still have renters?
I am pretty much willing to byte the bullet as i am sure that one way or another I am going to have too, so I'm just looking for the best way out. Is it a short sale (if i'm a canidate) with a hit on my credit, to lose $1000 a month and hope that the market comes back in a year or two other wise i'll lose more than my shirt, or is it find a personal loan for 75K and sell the house for as much as I can and just pay off the 75K for years and put my future financials in a 75K hole?
I'm soo lost and i'm having a hard time finding someone that is knowledgable enough about everything to ask all of my questions.
I've put off talking to the lender until i can get some good information or advice about what direction to go, because i'm afraid once I open that can of worms I can't close it back up.
HELP...

You may be able to write Suze Orman or Dave Ramsey post your question on their web page to get an answer or read their site comments. There has got to be someone else that has been through the same scenario. I know there's somebody that has first hand experience & some expert that has dealt with this scenario & has good advice. Keep seeking, you will find the answer just be willing to listen & do what is advised.

Is it a possibility for you to stay where you are in AZ and find another roommate?
I know this is not really what you want to do but if you could do that for probably another 2 years or so. Then also speak with the bank about extending your fixed rate. Hopefully you would have a much better chance of the market comming back up some and not loosing you shirt. $75,000. is a lot of money to be in debt for and have nothing to show for it.
Banks are not in the Real Estate business they don't want houses. They will usually try and work with you cause they know if they don't they could end up loosing even more. Remember when speaking to them try and keep your cool no matter what, you catch more bee's with honey than you do vineger. If you can get someone to feel for your situation you will have a better chance for getting them to help you as much as possible and or get you headed in the right direction.

Hope this helps,
Darleen

This message has been edited. Last edited by: darleenhallett.com,

I'd get with your lender and say you need to move and request a short sale. They might not talk to you because you aren't late on your mortgage but you can still try. The biggest issue is that they are overwhelmed right now and so getting in touch with someone, much less someone who cares will be a challenge.

It is taking the banks around 9 months from first missed payment to foreclosure. And in places with lots of foreclosures and homes with negative equity it is even higher turn times than that. That is a lot of free rent for those defaulting.


For the others I would love to see any data pointing to this thing being over in a year or two. Especially in a bubble state.

quote:

I'm not sure renters is a great idea?
I will be losing probably about $1000 a month at least in the difference between my mortgage and the rent?

I wasn't suggesting that you move away and keep the house as a rental while attempting to pay the mortgage plus your housing costs elsewhere. I was suggesting that you stay put and get roommates to help subsidize your mortgage payment. It's not ideal. I recognize that you want to move to PA, but financially, it may not be in the cards for you for the time being. Consider it a short term sacrifice in order to get out of this situation more or less unscathed (in comparison to the alternative).

Is the lender the same for both the primary mortgage and the HELOC? If so, you might request a "deed in lieu of foreclosure". They may not go for it unless you are late on payments. It doesn't hurt to ask, though. Your credit will take a hit, but not as bad as if you did a foreclosure. This would be a close alternative to a short sale.

There are services out there such as youwalkaway.com. Look into that or similar. Don't know anyone personally who has tried it, though. Make sure to get references, check the BBB, and do an internet search for some reviews of the company and its services before you sign on.

The problem is that depending on your state's rules (recourse or non-recourse state), you may be able to walk from the primary mortgage, but HELOCs are usually recourse loans (the lender can come after you for that money). I suppose the only way out of that would be to declare bankruptcy. Based on your posts, that doesn't sound like your style.

Good luck to you.

You did not say the location but would your house make a really nice vacation rental? I have seen houses rent for 2,000+ a week--do a search and see what houses in your area are going for as vacation rentals--you can leave your furnishings--make an income/payments and then when the time to sell comes it is ready to sell

You can always do what lots of people in your situation are doing. Which is sending your house keys to your lender and walk away. It is called jingle mail.