Originally Posted by ospexpress
I am looking for some advice on what to do. I lost my job last october. I was living in New Hampshire and could only find a job in Washington DC. So I relocated my wife and two kids to DC and am renting now in DC. I still have my house back in NH but the problem is I am upside down on the home by $50,000. I can only afford to pay rent and my mortgage for another two months, then I will not have the income to pay both. Of course I should pay my rent since that is where I am living, but should I just let the house go into foreclosure, try and work something out with the bank.
Has anyone heard of a bank letting you sell your house and roll the loss into another house you would buy? I would not have an issue with buying something in DC and having my loss on my home rolled into this home. It makes sense but the home I would buy would be upside down so the bank I know would not do it.
First of all, how much are you renting your home in the DC area? I know the rents there are sky high (depending on the location). But you would have been better off getting a 2-3 bedroom apt (even with kids) and toughed it out for at least 1 year.
How much do you think you are get for rent for your home in NH?
You need to evaluate your financial situation. Can you cover your 50K lost in NH?
No bank just eat a 50K lost on a home you own in order to let you buy another home. It does not work that way. Your credit will be ruin and you would not qualify for another home. The homeowners who did the buy and bail for most of 2008 have had that loophole closed by the lenders.
If you make too much money, than you are basically screwed. I'm sorry to sound blunt on this matter. The banks will not help homeowners (even ones responsible if they are not living in their Principal residence with Obama's socialist housing policy scheduled to take effect on March 4th).
If your wife is not working, I suggest you tell your wife to move back into the NH home with the kids. Make it look like you are still living there and hopefully the banks will help you out since that home will still be your Principal place of residence. That would be your best bet to get your mortgage subsidized on taxpayers money.
Or you could consider a short sale but this will ruin your credit almost as bad as a foreclosure.
Unfortunately in these times, if you play by the rules, you will get the short end of the stick. You need to play the housing game to get some government help.