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i owe more than house is worth

i owe more on my home that it is worth if i sell for a loss how do i make up the difference to the bank..I know new owners would want a clear deed but what does bank expect from me the seller?
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September 17 2012 - US
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You can Short Sale your property, and the Mortgage Debt Foregiveness Act is in place until the end of the year but you want to talk to a CDPE (Certified Distressed Property Expert) on the steps to take. If you are in California I can help you.
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September 18 2012

There are quite a few variables that affect your available options.  The best thing to do is get a consultation from a VERY good short sale real estate agent followed by an attorney and an accountant....and of course talking with your mortgage lender for options they might suggest. 

In a short sale (selling your house for less than what is owed) the variables include things such as the hardship and your finances (all assets).  Then other variables include who the investor is on the loan, number of loans, type of loans, the offer on the house and ultimately the net the bank will receive.

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September 17 2012

You have a few options.  What state are you in?

Cindy Merchant, Realtor
Total Realty Austin
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September 17 2012
Unfortunately there are a lot of folks in your same situation.  If you need to move and the bank considers your situation a hardship, they may allow you to do a short sale.  Your credit will be damaged for 2+-  years but you can move on and rent for a while.  If the difference between what you sell the property and what you owe is manageable and you can bring that money to the closing then there are no issues.
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September 17 2012
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Learn about short sales....
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September 17 2012
For off let me let you know that you are not alone in this process.  There are many homeowners in the same situation as you are.  If you can makeup the shortfall the bank does not need to be involved as you will come to closing with the amount that does not pay off the mortgage.  If you are unable to make up this shortfall the home will need to be sold as a short sale but you will need to show financial distress to qualify. 
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September 17 2012
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The bank expects you to pay what you agreed to pay when you took out the mortgage.     If you have certain qualifying hardships, the lender may be willing to allow you to do a short sale (i.e. they eat the loss).  If not, you can bring cash to closing to make up the difference or may be able to get a non-secured loan to cover the difference.

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September 17 2012
Hi, Where are you located? Here in California we have a "Forgiveness" act that is due to expire on Dec 31st. To truly understand your options and how they effect you, please speak with a real estate attorney and tax expert. If you are in the Northern Calif Bay Area, I can refer you to them. If you are out of California, ask an experienced short sale realtor to assist you every step of the way.Good Luck, Suzanne Looker [deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
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September 17 2012
 
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