Profile picture for user8802549

How to get into another home

We our out growing our small house (kids).  Is there a program to help get out from our small house into a bit larger one.  So far the only options I see is moving into a rental and stop paying my mortgage so that I qualify for a Short Sale or to ask for a Cash for Keys deal.  I am not sure how the Cash for Deals affects my credit compared to the Short Sale.  We cannot sell the house and see these two options as our only way, it just feels wierd to just stop paying our mortgage.
  • September 26 2013 - Ramona
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Answers (4)

But it does not feel weird to look for a program that allows you to get out of a mortgage because of decisions you have made and requires the tax payers to fund for you? This is the problem in the country today.
  • September 26 2013
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Profile picture for Ofe Polack
I am so sorry for the situation you find yourself in, The reason you feel "weird" about stop paying your mortgage, makes me feel that you are a principled person that is facing a difficult situation.  You do not need to stop payment on the mortgage if you have a hadship to be considered for a short sale.
The only legal way for you to get into a larger home, is to attempt to get your lender to agree to do a short sale.  If they agree that you have a  good reason to walk away from your commitment, due to whatever they consider to be a hardship, then you can see the short sale through, and rent for two years.  This time will give you a chance to save $$$ for the next purchase.
Once your credit is OK and depending on your combined family income, there are programs such as USDA-Rural Development that will allow you purchase a home without a down payment.
  • September 26 2013
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Profile picture for Trinidad.Gaeta
Have you considered renting your property and soliciting the help of a family member to qualify to buy another home? A short sale is designed for a family facing financial challenges that threatens their ability to sustain their mortgage payments. Simply outgrowing your home due to growing family isn't a hardship in the eyes for the lender. Simply stop making payments does not guarantee you short sale approval and it's not recommended. Cash for keys is normally the result of a foreclosure and lender interest in receiving possession of property without any damage to it. In both cases, a hit on your credit score goes without saying. Talk to a local Realtor/Accountant about your best course of action. 

Good luck and congratulations on your growing family. 

Trinidad 
  • September 27 2013
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Profile picture for CallTheSisters
Short sales are for people who have experienced a hardship.  Medical bills, death of a spouse, unemployment etc.

To qualify for a short sale you have to prove financially that you are unable to make the mortgage payments as a result of reduced income.  The banks will require tax returns, w-2's and bank statements.

There are millions of Americans dissatisfied with their current living arrangements who are stuck because they are underwater.  They continue to make their mortgage payments.

Whether a short sale or a foreclosure it will hurt your credit for several years. 
  • September 28 2013
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