Profile picture for Ticky85

Can I sell my house at a loss and just pay off the deficiency to the bank?(relocating for a new job)

Hi,
We are relocating to another state for a new job. We have lived in our current home for just over 3 years.. we are up to date on our mortgage payments and have a good credit history, but we need to sell our home quickly in order to be able to afford a home (probably just a rental until we're settled in) in the new location. With the current housing market, our home is probably not worth as much as we still owe on it unfortunately. My question is, rather than pay rent in our new home, AND a mortgage here while our house is on the market indefinitely, could we sell our home at a loss so that it will sell quickly, and then just pay the deficiency off to the bank? We obviously don't want to short sale, because it would affect our good credit history, and we CAN afford to pay the deficiency which is usually not the case with a short sale.. we would just need to pay it off rather than in one lump sum. Is this an option?
Thanks :)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 07 2012 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (1)

Profile picture for wetdawgs
Yes, you can pay the deficiency and move on but you also mentioned you can't pay it in a lump sum.   As you owe the outstanding mortgage balance when sold, you will need to come up with payment arrangements that are acceptable to your lender.    Lenders prefer to be repaid vs short sales, so they probably will have some suggestions for approaches.

It is so refreshing to hear someone ready to pay the deficiency!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 07 2012
 
Related Questions
Zillow Mortgage Education Center
  • Asked by AndreaSmolin
  • In Mortgage
  • June 07 2013
90% LTV on a 15/15 ARM... Possible?
Profile picture for Tyson Rondeau
Latest answer by Tyson Rondeau
13 minutes ago | 6 answers
  • Asked by m palilonis
  • In Mortgage
  • 11 hours ago
Can you get a mortgage loan with a credit score of 620? We're having a terrible time.
Profile picture for Tyson Rondeau
Latest answer by Tyson Rondeau
18 minutes ago | 4 answers
How can we get a second fa mortgage
Profile picture for Tyson Rondeau
Latest answer by Tyson Rondeau
22 minutes ago | 3 answers
Can I obtain a first time home buyer loan, or a house loan if I am a contracted employee?
Profile picture for Tyson Rondeau
Latest answer by Tyson Rondeau
41 minutes ago | 1 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.