Question on selling a home

Hi everyone! I am a little confused and would like some insight on this matter. We like many other people owe about 30k more than our home is worth. We may have an offer from our current tenant. Does anyone know if there are any programs our loans you can take out to cover the difference without affecting out credit? We bough our home in 2008. TIA!

Re: Question on selling a home

I'm not sure about programs but I've been working with a mortgage broker that seems to be very knowledgeable on a lot of different programs out there. you can email him to get ideas with no commitment. let me know if you'd like his contact! :)

Re: Question on selling a home

I encounter this situation a lot, when counseling sellers, and I don't know of any such programs.

Unfortunately, the only options I know of are to (i) bring cash to the table to cover the difference between what is owed and what you are selling for, or (ii) do a short sale, where the lender that holds your mortgage will agree to accept less than what is owed. And in order to do a short sale, it's not enough to just owe more than what the home can be sold for. The seller also has to show some type of financial hardship that makes it impossible for them to continue to afford the home (it can't just be that the seller would like to move, but could afford to stay if they had to).

I have heard of lenders making short sale sellers sign promissory notes, in some circumstances, obligating them to pay back some or all of the shortfall. But it is still a short sale in that situation, not a way to avoid one. That's just a condition of the lender's agreement.

If you learn of any programs/loans to cover the shortfall in these situations, definitely let me know. I'd be very interested. But to my knowledge, they don't exist!

Re: Question on selling a home

Thank you very much!

Question on selling a home

I have a family member dealing with this right now and her bank will only allow the sale if she can pay the mortgage off in full. Since she is unable make up the difference she is unable to sell.