Profile picture for user8720019

Want to move, but we're underwater. Any ideas?

We owe 294k o a FHA loan. I talked to 3 different realtors and they all said we were underwater. Could sell for 275k maybe. Then we thought about renting out our home and buy new one , but the bank said no because of FHA loan has to be primary home. Now thinking of short sale but we don't want to be late because we want to buy a new home. Will we be approved for short sale without hardship?
Reason for wanting to leave, our house is to small. Bought when we had 2 kids and now have 3. Also the school is really bad, son gets picked on. Private school cost 10k! Also we want to move to Florida, since we love it there. Plus my husband can't stand the stress of his job in NYC. So he is looking for a job in FL. So not a job transfer! Help!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 25 2013 - Piscataway Township
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

FHA foreclosures are a bit different than a conventional Short Sale. In fact, you have to receive FHA Approval to Short Sell your home. The good part to this is you will be given a price point to list your home by FHA once they issue you and ATP (Authorization to Participate). This is called Phase I.
You can do this before listing your home. So, while I agree with Connie, you can keep current on your payments, preserving your credit to the extent you can, while navigating the process to get the Sale Price as approved  by FHA in advance.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 29 2013
you will have to short sale, and use the relocation as the excuse...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 27 2013
Profile picture for user8720019
Their are houses like ours that have sold for 250k-265k. Of course our house is nicer than those houses, but the realtors are using those sold houses for the CMA. I guess I should wait till my husband gets the job in Fl, then try for short sell. Question is should I even try to sell my house overpriced? If I did get close to what we owed I could bring some money to close. Just don't know if its a waste of time listing it now overpriced?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 26 2013
Profile picture for SoCal_Engr
Assuming your "#1 goal" is to relocate to Florida...

Look into rental costs in Florida. It might (?) be possible to rent your current house out, rent (versus buy) in Florida, and come out "close to even"? This would at least get you moved, and remove the house as an obstacle to moving forward. What is the local trend in prices? Any guesstimate as to how long before the house could be sold without a loss?

I am unsure how this approach would affect any attempted short sale. Don't know if the lender would be less inclined (as the house would become "income property"), or if the lender would consider your employment/move to Florida as sufficient cause for "hardship".

If the #1 goal is to get out of the current house and down to Florida, then getting overly focused on being able to immediately buy may be a distractor.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 25 2013
It doesn't sound like there are a lot of options at this time.  The market is heating up in a lot of areas.  Depending on how underwater you are, it may be best to wait it out for another year and see how things stand then.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 25 2013
 
Related Questions
Want to move, but we're underwater. Any ideas?
Profile picture for Rich Golio, Esq.
Latest answer by Rich Golio, Esq.
April 29 2013 | 5 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 34 Johanna Ct, Piscataway, NJ Home For Sale
    34 Johanna Ct, Piscataway, NJ 08854

     For Sale: $549,900

    • Beds: 5
    • Sqft: 2871
    • Baths: 3.0
    • Lot: 8842
  2. 204 Stephenson Ave, Middlesex, NJ Home For Sale
    204 Stephenson Ave, Middlesex, NJ 08846

     For Sale: N/A

    • Beds: 1
    • Sqft: 1
    • Baths: 1.0
    • Lot: 4791
  3. 12 Canterbury Ct, Piscataway, NJ Home For Sale
    12 Canterbury Ct, Piscataway, NJ 08854

     For Sale: $152,500

    • Beds: 3
    • Sqft: 1068
    • Baths: 1.0
    • Lot: --