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Old 07-15-2011, 08:27 PM
 
5 posts, read 6,121 times
Reputation: 10

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I'm thinking of selling my house. If you listen to folks like Suze Orman, a house is no longer a good investment unless you want to hold on until many years from now. That's not me. My commute is weighing on me and I believe adds too much stress and takes time away from my life. I also don't like the fact that, for whatever reason, my side of the street has bad grass for the most part. It's difficult to get the yard to flourish. If I didn't have so few hours to myself I could keep it up better. Plus, I am trying to make some changes in my life, such as a new career. Overall, I want a better quality of life.

So, I bought the house for $219,900 3.5 years ago and I know it won't sell for that much. If the balance is now $209,000, what happens to the balance if I am only able to sell it for say, $190,000? Do I have to pay the $19,000? If so, can I pay it in installments, like I do my mortgage or do I have to pay it all at the time of sale?

Thanks in advance...
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Old 07-15-2011, 09:08 PM
 
Location: NJ
17,579 posts, read 38,383,508 times
Reputation: 16100
You may want to post this in the shortsale forum. The short answer is you have to get your mortgage holder to agree to anything like that. You can't just make that decision on your own.

Now if you have the cash to pay the difference that is another story.
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Old 07-15-2011, 09:54 PM
 
4,483 posts, read 7,964,701 times
Reputation: 6415
If you do a shortsale, you need to make sure the paperwork specifies that you no longer owe the bank. You may need a lawyer to do this.

If not, the bank can sue you years later for the $19,000, and get a court judgement. This could mean garnishing your wages, forcing you to sell your current house, car or any asset to satisfy the judgement.

Bankruptcy could solve this problem, but its easy enough to avoid if you just cover yourself in the shortsale legal documents.
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Old 07-15-2011, 10:42 PM
 
Location: Newton, MA
324 posts, read 900,121 times
Reputation: 272
Quote:
Originally Posted by UsedtobeinCA View Post
I also don't like the fact that, for whatever reason, my side of the street has bad grass for the most part. It's difficult to get the yard to flourish. If I didn't have so few hours to myself I could keep it up better.
Please forgive me for joking at your expense, but what you describe is a literal case of "the grass is always greener..."

But to address your actual question, while financial advisers aren't currently recommending people buy for the short term, you have ALREADY bought, so you fall into a different category. I don't think they'd necessarily advise you to sell now unless you have to. Maybe they would, who knows...but you have to do what's right for your specific life circumstance.

Furthermore, since you owe more than the house is worth, you'll need to talk to your mortgage company about selling as a possibly short sale. Those are not quick transactions usually.

Are there ways to change your life without moving out of your home?
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Old 07-15-2011, 10:43 PM
 
5 posts, read 6,121 times
Reputation: 10
Don't you have to show financial hardship to do a short sale? I won't be able to show that since I can make my payments.
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Old 07-16-2011, 10:55 AM
Status: "Planning for the future." (set 2 days ago)
 
Location: Just south of Denver since 1989
10,688 posts, read 28,542,235 times
Reputation: 6860
look into a short pay versus a short sale - you make up the difference between the balance and the closing over time.

You can bring money to the table, if you have it.
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Old 07-16-2011, 01:50 PM
 
Location: southwest TN
8,182 posts, read 14,293,225 times
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While not ideal, you could rent out your home for whatever expenses you have including a property manager; and then rent something that is more convenient for you until the time you can sell it. HOWEVER, do look into the tax issues concerning converting this to an investment -- I would consult a financial advisor/accountant.
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Old 07-16-2011, 02:20 PM
 
Location: Barrington
42,035 posts, read 31,818,472 times
Reputation: 14116
You are asking your lender to consider a payment schedule for the difference not the same thing as asking your lender to eat the difference ( short sale) because your grass is lousy and it's no longer convenient to owe more than the place is worth.

Bringing money to the closing table and agreeing to a payroll draft may increase the likelihood your lender may consider your situation.
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