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Profile picture for kayne waman

Underwater mortgage and no financial hardship

Hello,

I have an underwater mortgage for a condo I purchased in 2006. Purchase price is $250K and current value is estimated to be $185K. I refinanced under HARP 1.0 in 2010. I recently moved into my parents home and I have rented out the condo. I do not have a financial hardship but I would like to get rid of the condo to start putting money towards my parents home.

Do I have any options I can explore? Thanks.

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February 05 - US
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Answers (6)

Discuss with your current lender. 
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February 06
Profile picture for wetdawgs
What can you do?

1. Sell it and bring the difference to closing.

2.  Do a strategic default or foreclose and mess up your credit for a long time.

3.  Keep the status quo. 
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February 06
Profile picture for sunnyview
Nope. Once you HARP, that's it. If you can rent out the condo for it's expenses you can wait until the market move up. For now any other "non walking away options" are probably expended.
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February 06

As Barb mentioned, you can only do HARP once. So unfornately you will not be able to utilize that program again. Your best bet is to contact your currenty servicer and see if they have any programs available to help you get a lower payment. Other than that, if you keep renting it out to help make the mortgage payment you will eventually build some equity back into the home. I would also advise again a short sale as it will hurt your credit and it may be awhile before you would be able to purchase another home.

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February 06
As you know, since you did HARP once, it can't be done again. And with no financial hardship, you won't get a loan mod, either. Why not rent out the condo to offset the costs? Talk with an accountant about the income tax benefits of investment property. IMHO, try not to let this go to short sale or foreclosure if at all possible. Your credit will be trashed and it will be a long time before you can get a mortgage again.
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February 05
Hi, the your best option is to contact your current mortgage lender and ask for alternatives; they may give you the option to get out of the mortgage, even if you don't think you have a financial hardship.  If you need help, please email me. Thanks
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February 05
 
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