Upside Down Mortgage

upside down loans

Question: How do you sell your home if you are going to be upside down on the loan? Thanks?

Is it possible to role over the upside down amount into a future home purchase?

Answer: No you cannot "roll over" the excess amount into the mortgage for your next home. You can try to sell short but the bank has to approve the short sale and it WILL damage your credit rating.

Are you headed towards foreclosure or do you just want to move? Listing your home on a short sale with bank approval is the next to last thing you'd want to do. But if you must sell, you should look for a Realtor who has experience with MANY short sale negotiations. If you decide to do this, be patient and prepare to jump through hoops. Lenders are sometimes very difficult to negotiate with on a short sale.

There might be help from the federal government coming soon, but that's a pretty big "if".

You may be able to negotiate directly with your lender. The last thing they want is another foreclosure on the books right about now. This gives you a little (albeit very little) leverage.

And depending on your exact situation, you may be able to refinance. This is the least likely, but it doesn't hurt to ask! Find a good loan officer and see what they say.

Upside Down Loan Explanation

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!