How to best prepare to sell when underwater.

Profile picture for mpsmit3
I have an opportunity for a new job that is too good to pass up, but my house may be holding me back.  I've been in my house for 4 years, and $45,000 underwater.  Because this is a voluntary move, I don't think I qualify for a short sale.  The new job will start in 4-6 months.  There is no way I will have the $45,000, but I can probably get some if not all of it from a relative.  Would it be better to pay down some of this mortgage in the meantime ($7,000-$10,000), or reduce my credit card debt, thus having a better debt:income ratio when it comes to moving and buying a new house?
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August 19 2011 - East Lansing
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Profile picture for therealtorguy
Congratulations on the new job opportunity! You might want to contact the lender and explain your opportunity & situation. Inform them that you will not be able to pay the mortgage in full at closing and ask if they will give you a concession. Keep in mind that you will need money for moving expenses and to get situated in your new community.

You might want to consult an attorney and have him/her contact your lender. They might be able to explain your situation better and get more satisfactory results.

Good luck and I hope you love your new job!
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August 21 2011
Profile picture for robbuffington

First of all congrats on the new job. That is a testament to your desirability in this economy for sure. In regards to your debt, it would be good for you to determine which has the higher interest and focus on that one first. With that said, I'm not a financial planner, but I do know a little bit about having to prioritize when it comes to situations like this. In addition, if you decide to leave the area, I would agree with Jim that you need to contact the lender and explain the situation. They may be willing to work with you. Hope this helps

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February 13
 
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