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They're In a Bind |
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My family has lived in our home for 16 months. We now have military orders to relocate to another state and need to either sell or rent our home. Problem is, I have been told by realtors that there is not enough equity to sell our home without paying out of pocket and if we rent, "fair market value" is well below what our mortgage cost. I have been given many options to look into like For Sale by Owner and offering someone to Assume our Loan. We have a 30 year fixed 5.5% FHA loan. When we applied for this loan, it was approved for a "first time buyer" program which got approved by having a 1st and 2nd mortgage to start. We bought this house for $251k and with all the taxes and what not, both morgages together now have a balance of about $255k total. The same model houses around the neighborhood are selling no more than $259,900. We hardly have any money to pay anything out of pocket. What should we do? |
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I don't think For Sale By Owner will solve your problem. That is a nice interest rate on your mortgage, and you might get somewhere advertising that a buyer could assume a 5.5% loan. That would save the buyer considerable in closing costs as well as giving them lower payments than they might have elsewhere. But you might remain liable for the loan if they didn't pay it. TAlk with your lender's "workout" department to get advice on just where you stand, and to see if they have any suggestions.
Mostly all I can offer you is sympathy -- you've been caught in a bad situation through no fault of your own.
Let me know what happens; I'm interested.
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Edith
Originally published on May 22, 2008 |
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