Buying another home while being upside-down? (loan, credit card, loan, bank)

[KerryB]

We pretty much have to leave our home that we've been in for a couple years now & move to another state for a job. Only problem is we bought our current home at the height of the bubble & are now upside-down by a few thousand $.

I've heard of the banks letting people in this situation sell the home at a loss & then whatever the difference is, adding that figure onto a new mortgage for a new home at their new location. Which is totally fine with us. We're not looking for a "free ride" & wanna do what's best for us & them while keeping everything in good standing.

Are banks usually pretty easy to work with people in this situation? Thanks.

[InvesTools]

Originally Posted by KerryB

We pretty much have to leave our home that we've been in for a couple years now & move to another state for a job. Only problem is we bought our current home at the height of the bubble & are now upside-down by a few thousand $.

I've heard of the banks letting people in this situation sell the home at a loss & then whatever the difference is, adding that figure onto a new mortgage for a new home at their new location. Which is totally fine with us. We're not looking for a "free ride" & wanna do what's best for us & them while keeping everything in good standing.

Are banks usually pretty easy to work with people in this situation? Thanks.

Request short sale. Have an appraisal. Banks are jerks and will try to scare you/advice you against it.

[KerryB]

Originally Posted by InvesTools

Request short sale. Have an appraisal. Banks are jerks and will try to scare you/advice you against it.

Yeah, thats kinda the feeling Im getting. Apart from it being like pulling teeth contacting them & getting some straight answers, they dont seem to wanna work with us, even if we would agree to pay back the loss. I mean, what do they want, us to be prisoners in our home & wait until the market shoots back up to what it was?? That'll take years. Hate to tell em, but life doesnt always work that way.

I can now kinda see why some people just say F it & leave their home, letting it go into foreclosure. Maybe I'll get someone on the horn when I miss a couple payments.

[TimtheGuy]

Originally Posted by KerryB

We pretty much have to leave our home that we've been in for a couple years now & move to another state for a job. Only problem is we bought our current home at the height of the bubble & are now upside-down by a few thousand $.

I've heard of the banks letting people in this situation sell the home at a loss & then whatever the difference is, adding that figure onto a new mortgage for a new home at their new location. Which is totally fine with us. We're not looking for a "free ride" & wanna do what's best for us & them while keeping everything in good standing.

Are banks usually pretty easy to work with people in this situation? Thanks.

It's not worth wrecking your credit to do a short sale over a "few thousand $". Sell your house for whatever you can get and either pay the difference in cash or take out a loan to cover the difference. The bank with your loan may give you a loan to make up the differecne (as opposed to a short sale), or maybe you could secure a personal line of credit, a loan against some asset (i.e. a vehicle) or even use a credit card.

[TimtheGuy]

Originally Posted by InvesTools

Request short sale. Have an appraisal. Banks are jerks and will try to scare you/advice you against it.

The OP said he wants to do whats right for him and the bank.
I think RE professionals who post bad advice are "jerks".

Does doing a short sale keep a borrower in "good standing"??