- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (4)
- Dan Currie, "Daniel J. Currie"
- Contributions:129
I don't know about your county property taxes where the home is, but in Indiana, the Homestead Credit and Mortgage Exemption are filed by owner-occupants only. These filings reduce the property taxes significantly.
Here's an option for you to consider:
If your State allows the same type of tax saving opportunities, you could sell the home on contract which would reduce the tax liability making it more affordable for a contract buyer who would pay full price and give you a down-payment. Only sell it to someone who has applied with a loan originator and who is certain to qualify for a home mortgage to purchase your home at some future date that is acceptable to you.
You must give the buyer ownership by contract for this idea to work, however, you may be able to have them sign a Quit Claim Deed and have it notorized. This document can be filed in the County Recorder's Office in the event of default which would allow you to evict the tennant instead of foreclosing.
Use a layering of contracts. Start with a lease and then offer an option to buy and take their down-payment as an option consideration. Then convert the option to seller-financing (contract sale). Make sure to have a separate written agreement that the buyer signs to allow you to file the Quit Claim Deed if they are in default.
Check your legal advisor about these ideas and good luck!
Here's an option for you to consider:
If your State allows the same type of tax saving opportunities, you could sell the home on contract which would reduce the tax liability making it more affordable for a contract buyer who would pay full price and give you a down-payment. Only sell it to someone who has applied with a loan originator and who is certain to qualify for a home mortgage to purchase your home at some future date that is acceptable to you.
You must give the buyer ownership by contract for this idea to work, however, you may be able to have them sign a Quit Claim Deed and have it notorized. This document can be filed in the County Recorder's Office in the event of default which would allow you to evict the tennant instead of foreclosing.
Use a layering of contracts. Start with a lease and then offer an option to buy and take their down-payment as an option consideration. Then convert the option to seller-financing (contract sale). Make sure to have a separate written agreement that the buyer signs to allow you to file the Quit Claim Deed if they are in default.
Check your legal advisor about these ideas and good luck!
- Zachary S
- Contributions:2
Thank you Philip and SoCal. Both ideas appreciated. I am still current and have started to seek out a lawyer and accountant to help. One thought that scrossed my mind was to stop payments on the first to get their attention and while that is happening, use the proceeeds to pay off the first very aggressively. By next summer, I could be close to out of the 2nd mortgage but obviously have gotten into arrears with the first (intentionally so.)
The net effect may be to have a significantly better position (say mortgage value $265 and house at $255 value?)
SoCal - I have tried contacting them while paying and they do not care right now since I am paying well.
The net effect may be to have a significantly better position (say mortgage value $265 and house at $255 value?)
SoCal - I have tried contacting them while paying and they do not care right now since I am paying well.
- Philip Sencer, "Philip_Chicago"
- Contributions:551
First get a couple of agents to do a market analysis to see what the value might actually be. If you are 40K+ under water with 540/mo negative cash flow you might do a short sale. Just about all banks will allow it, but none of them will 'commit' to relieving you of the eventual deficiency when it sells. They will analyse your finances to see if it is worth it to them to go after you for the balance. You also need to speak with an accountant to see if the deficiency will be taxable to you and what other options you might have based on your entire financial situation.
If you sell for enough to pay off the 1st lien holder then you might just ned to deal with the 2nd lien holder.
One problem you might haveis that many banks will not even talk with you until you are 2-3 months behind in payments. They have so much to deal with that they just do not pay any attention to you while you are current.
If you sell for enough to pay off the 1st lien holder then you might just ned to deal with the 2nd lien holder.
One problem you might haveis that many banks will not even talk with you until you are 2-3 months behind in payments. They have so much to deal with that they just do not pay any attention to you while you are current.
- SoCal_Engr
- Contributions:5666
The following is not legal advice, just an opinion from the peanut gallery...
Don't stop payments, but play some hardball with the lender. Be upfront, tell them the circumstances, and let them know you need a shortsale or you will have to consider defaulting on the loan (due to new job and relocation).
You should probably talk to a RE attorney to make sure your backside is covered in case you do end up having to default.
Don't stop payments, but play some hardball with the lender. Be upfront, tell them the circumstances, and let them know you need a shortsale or you will have to consider defaulting on the loan (due to new job and relocation).
You should probably talk to a RE attorney to make sure your backside is covered in case you do end up having to default.
Stuck owning an underwater house I do not live in and do not want. How best to sell it?
I would love to hear advice and ideas - I am looking the best possible way out of this. Is it stop payment and ask for a short sale next spring?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.