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FHA Streamline Refinance or do a Short Sale?

I live in chicago and want to move due to me owing more than what its worth.
any ideas ....
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June 11 2012 - West Lawn
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Answers (7)

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thanks to all who replied,
I will do a refi, and rent it out down the road.
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June 13 2012
Is the only motivation to move is because you owe more than the home is worth? Can you afford it and you just do not want to live in a house worth a lot less? Why would it matter if you can still pay the bills? Everyone is so quick to "Bail and switch" If you can qualify for a refi, they are going to ask if you are an owner occupier of the home,The rates are very low as an owner/ occupier. You actually sign off you will live in the home as your primary, the you want to rent it out? Then your second loan on another home,will be an investment loan. You would be wise to run all the scenarios with a lender you trust. If you MUST relocate for reasons you didNOT mention,and you can afford to keep you your home and rent it. I would and wait out the market until you can sell and cover all costs. Short selling is just not a way to get out of a home you are upside down on. You risk your credit, future loans, future employment ( if a short sale is not successful and you face Foreclosure or bankruptcy) Many sellers still have not felt the effects of what lenders or collection agencies might do down the road even with a successful short sale. Think about your real reasons for moving. Try to keep the home and rent it. Best of luck
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June 12 2012
In general user 836682, if you currently are FHA on this primary home you can not get ANOTHER FHA loan. So whether it is a RD or Conventional it just can't be FHA. There are always exceptions in rare cases and that is when a lender comes in. 
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June 12 2012
Well it matters what your situation is. You cant just short sell a property. It would have to qualify. I would really speak with an agent. Let them know your financial situation and they will be able to better assist you from there.
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June 11 2012
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thanks Brian,
say I do the refi and rent it out.
How soon can I get another loan to buy another property?
,in which I heard will have to be a conventional loan.
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June 11 2012
Hello User836682

I think that you should speak with an experienced lender. There are a lot of variables involved, but you may be able to short sale and move on and buy another house at the same time. It all really depends on what the specifics are within your situation. If, for instance, you don't exactly know that you want to sell, then do the Streamline to get your payments down until you figure it out. Shop around with different primary market lenders to discuss your options and good luck :)
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June 11 2012
Well, do you want to screw up your credit or not?   If you can refi it to a lower monthly payment that would allow you to rent it out, then I would go that route.  If you do the short sale, your FICO scores will take a hit and you won't be able to buy anything else for a minimum of 2 years.

I have a rental that I am upside down on, but the rent I collect covers the mortgage payment so I would never consider a short sale. Eventually I will have my equity back and can decide to sell or keep it as a long term investment.
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June 11 2012
 
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FHA Streamline Refinance or do a Short Sale?
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