What's the best way to get out of my house that I owe more than it's worth?

Profile picture for jnel25
I'm in a house that I purchased 5 years ago for 215k.  It's now worth 174k.  It's a 2 bedroom and I have a second kid on the way and we deffinetly don't have enough room..  I'm in an all interest loan because that's all I qualified for at the time when I 1st started my own business.  So I still owe around 215k.  I need to get out of this house somehow and I've had a couple people say foreclosure or short sale.  I don't want this house to affect me getting into another house but at the same time I don't want to feel like I'm paying rent on a house I'm suppose to own.  What could I do?
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July 18 2009 - Taunton
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Answers (4)

Profile picture for wetdawgs
There are eligibility requirements for short sales and foreclosures (e.g. hardship, death, illness, divorce etc.).     Study up on those requirements to see if you might be eligible.

Should you chose to short sell or foreclose, it will be several years until you can purchase another house.    Therefore, consider your options very carefully.

Please note: Zestimates are not appraisals but numbers generated from a computer model.    A real appraisal may give you a better idea on what it is worht.
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July 18 2009
Profile picture for jnel25
Zillow and realtor.com says the value. That's where I got those numbers from. 
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July 18 2009
Profile picture for Cosmic Cow Pie
Right now there are loan modification programs available.  The first place to start is direct communicaiton with your lender... short sale or foreclosure IS going to effect your credit.  You have a moral dilema. 
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July 18 2009
Who says it is only worth 174K today?

You have many options no one has thought of yet, at least I never heard anyone tell of them.

I am done giving out hard earned, free advice, but since you have children, contact me directly for some suggestions for you to consider.
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July 18 2009
 

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