Has anyone sold their home via shortsale (loan, sell homes, interest rate)

[atlcharm]

Hi,

I already know I made a big mistake of buying a home I could not afford so I don't need anyone to point that out to me. I already feel bad enough. Obviously My first homebuying experience was not a good one and I will not buy again for a long time.

When I purchased I had a good score of about 730. Now my middle fico score is about 680. It went down because I ran up alot of debt due to being in a home I could not afford. My groceries, etc went on credit.

I purchased my home as a foreclosure. I paid $199k and the home appraised at $230k. Now that the interest rates have gone down I wanted to take the opportunity to refinance my debt into the home that way I'd have some breathing room and that way I'd be able to afford my mortgage a little better. I have no extra cash at the end of the month once I pay credit and mortgage. Well guess what, the appraisal was done for the refinance only came in at $200k. There will be no room to roll any any debt or at least not anything significant.

This home has drained me emotionally, stressed me out, ran up my debt and now I'm still stuck. I'm considering a shortsale and am wondering how damaging it can be to credit and how long it will take to recover. I am so embarrassed but definitely don't want to do a foreclosure. But I don't think I can do this anymore. Someone just purchased a 3 bath, 5 bedroom, with full basement for $189k in my subdivision. My home is 2.5 bath, 4 bed with no basement. No way that anyone is going to give me an appraisal over $200k. I'm considering a shortsale. I'm wondering how damaging this will be to my credit and if my bank will even hear me out since I haven't missed a payment.

Where I live is not an area I want to stay in. A lot of breakin's etc. If I didn't have this house I could probably (with discipline) have my credit card debt paid off in a years time.

[atlcharm]

Well I guess nobody wants to admit to it. Well do you know someone who has sold via shortsale?

[Chickrae]

Well we bought a home that was a short sale....but that isn't really helping you. Give your post time...someone will respond. Usually real estate agents give good advice on here. People make mistakes. You don't have to be embarrassed. You probably learned some things from this experience which will help you in the future. Alot of people are in your same situation. It doesn't make it any easier, but you are not alone

[atlcharm]

Originally Posted by Chickrae

Well we bought a home that was a short sale....but that isn't really helping you. Give your post time...someone will respond. Usually real estate agents give good advice on here. People make mistakes. You don't have to be embarrassed. You probably learned some things from this experience which will help you in the future. Alot of people are in your same situation. It doesn't make it any easier, but you are not alone

Chickrae,

Thank you so much for the kind words!!! I should be able to look around me and tell I'm not alone. Thank you for reminding me of that. You are right I've learned SO MUCH from this experience that the next time I do buy I will not make the same mistakes. One of my biggest mistakes was moving into a county with high taxes. That comprises over $300 of my mortgage. thanks again I do feel better.

[mikandmari]

Can you sell the house for less than you owe, and just take a note for the difference? It may take you longer than a year to pay off your credit cards and this debt... but it would be less than paying the mortgage & those property taxes.

[atlcharm]

Originally Posted by mikandmari

Can you sell the house for less than you owe, and just take a note for the difference? It may take you longer than a year to pay off your credit cards and this debt... but it would be less than paying the mortgage & those property taxes.

You know I was actually wondering if I'd be allowed to do something like this instead of a shortsale which would butcher my credit.

[sbanawan]

Originally Posted by atlcharm

You know I was actually wondering if I'd be allowed to do something like this instead of a shortsale which would butcher my credit.

If you're willing to do that, I hope that the angels of good fortune smile upon you for living up to your commitments and honoring your obligations. Not that I'd wish ill on anyone going through a tough time but there's a special place for those who are not only willing to own up to their mistakes but deal with the consequences. I hope it works out for you.

[KerryB]

Originally Posted by atlcharm

You know I was actually wondering if I'd be allowed to do something like this instead of a shortsale which would butcher my credit.

Honestly, as wide spread as this thing is, I dont see lenders giving future borrowers as hard a time as they would have under normal circumstances. I mean, no one will be able to buy a home in the future if that were the case & they need to sell homes! So if they shut all these people out, no one will win.

So, I personally think lenders will be more forgiving in many cases. Not all, but many. They'll pretty much have to.

[phonelady61]

okay my sister sold her house short sale and it hit her credit one hundred points . and but i must say she had a good bank and mortgage company that worked with her and they forgave the rest of the money . Not always in a sittuation like this , you usually have to pay back the rest of the loan from my understanding . good luck .