[gn]

DJNinSD,

If you have been paying only the interest part of your loan, it sounds like you won’t be able to afford the mortgage once it resets.

You can certainly try to negotiate a short sale with the lender to “soften the blow” on your credit. However, beware of one potential problem:

Short sales can take a long time. During this time, you’ll continue to “throw good money after bad money”. It’s quite possible that you’ll end up walking anyway because of the frustrations while negotiating with the lender.

You can try the following tactic:

Contact the lender about a short sale & immediately stop making payments (to inject some urgency into the lender’s actions). Of course, if you do this, you’ll have to be prepared to actually go through with the foreclosure if the lender doesn’t agree to a short sale.

[gn]

DJNinSD,

If you have been paying only the interest part of your loan, it sounds like you won’t be able to afford the mortgage once it resets.

You can certainly try to negotiate a short sale with the lender to “soften the blow” on your credit. However, beware of one potential problem:

Short sales can take a long time. During this time, you’ll continue to “throw good money after bad money”. It’s quite possible that you’ll end up walking anyway because of the frustrations while negotiating with the lender.

You can try the following tactic:

Contact the lender about a short sale & immediately stop making payments (to inject some urgency into the lender’s actions). Of course, if you do this, you’ll have to be prepared to actually go through with the foreclosure if the lender doesn’t agree to a short sale.

[gn]

DJNinSD,

If you have been paying only the interest part of your loan, it sounds like you won’t be able to afford the mortgage once it resets.

You can certainly try to negotiate a short sale with the lender to “soften the blow” on your credit. However, beware of one potential problem:

Short sales can take a long time. During this time, you’ll continue to “throw good money after bad money”. It’s quite possible that you’ll end up walking anyway because of the frustrations while negotiating with the lender.

You can try the following tactic:

Contact the lender about a short sale & immediately stop making payments (to inject some urgency into the lender’s actions). Of course, if you do this, you’ll have to be prepared to actually go through with the foreclosure if the lender doesn’t agree to a short sale.

[gn]

DJNinSD,

If you have been paying only the interest part of your loan, it sounds like you won’t be able to afford the mortgage once it resets.

You can certainly try to negotiate a short sale with the lender to “soften the blow” on your credit. However, beware of one potential problem:

Short sales can take a long time. During this time, you’ll continue to “throw good money after bad money”. It’s quite possible that you’ll end up walking anyway because of the frustrations while negotiating with the lender.

You can try the following tactic:

Contact the lender about a short sale & immediately stop making payments (to inject some urgency into the lender’s actions). Of course, if you do this, you’ll have to be prepared to actually go through with the foreclosure if the lender doesn’t agree to a short sale.

[gn]

DJNinSD,

If you have been paying only the interest part of your loan, it sounds like you won’t be able to afford the mortgage once it resets.

You can certainly try to negotiate a short sale with the lender to “soften the blow” on your credit. However, beware of one potential problem:

Short sales can take a long time. During this time, you’ll continue to “throw good money after bad money”. It’s quite possible that you’ll end up walking anyway because of the frustrations while negotiating with the lender.

You can try the following tactic:

Contact the lender about a short sale & immediately stop making payments (to inject some urgency into the lender’s actions). Of course, if you do this, you’ll have to be prepared to actually go through with the foreclosure if the lender doesn’t agree to a short sale.

[gn]

DJNinSD,

If you can answer the following questions to enable us help you better:

– How much longer to you intend to stay in that house ?
– What is the ratio of PITI (mortgage + property tax + insurance) to your gross income ?
– What is the current market rent for a house that is equivalent to your house ?

[gn]

DJNinSD,

If you can answer the following questions to enable us help you better:

– How much longer to you intend to stay in that house ?
– What is the ratio of PITI (mortgage + property tax + insurance) to your gross income ?
– What is the current market rent for a house that is equivalent to your house ?

[gn]

DJNinSD,

If you can answer the following questions to enable us help you better:

– How much longer to you intend to stay in that house ?
– What is the ratio of PITI (mortgage + property tax + insurance) to your gross income ?
– What is the current market rent for a house that is equivalent to your house ?

[gn]

DJNinSD,

If you can answer the following questions to enable us help you better:

– How much longer to you intend to stay in that house ?
– What is the ratio of PITI (mortgage + property tax + insurance) to your gross income ?
– What is the current market rent for a house that is equivalent to your house ?

[gn]

DJNinSD,

If you can answer the following questions to enable us help you better:

– How much longer to you intend to stay in that house ?
– What is the ratio of PITI (mortgage + property tax + insurance) to your gross income ?
– What is the current market rent for a house that is equivalent to your house ?

[gn]

23109VC,

That’s a very clever plan (having your parents acting as a mortgage lender to bypass the scrutiny of an institutional lender). There is a small “penalty” for doing this:

Since the house will change hands twice, there are additional transaction fees. But, since the sale from your parents to you is a “private party sale” (i.e. no broker/realtor commisions), the fees should be much less.

Your situation is a “special case” because not everyone who is upside down has parents who have the financial resources to buy a house with cash.

[gn]

23109VC,

That’s a very clever plan (having your parents acting as a mortgage lender to bypass the scrutiny of an institutional lender). There is a small “penalty” for doing this:

Since the house will change hands twice, there are additional transaction fees. But, since the sale from your parents to you is a “private party sale” (i.e. no broker/realtor commisions), the fees should be much less.

Your situation is a “special case” because not everyone who is upside down has parents who have the financial resources to buy a house with cash.

[gn]

23109VC,

That’s a very clever plan (having your parents acting as a mortgage lender to bypass the scrutiny of an institutional lender). There is a small “penalty” for doing this:

Since the house will change hands twice, there are additional transaction fees. But, since the sale from your parents to you is a “private party sale” (i.e. no broker/realtor commisions), the fees should be much less.

Your situation is a “special case” because not everyone who is upside down has parents who have the financial resources to buy a house with cash.

[gn]

23109VC,

That’s a very clever plan (having your parents acting as a mortgage lender to bypass the scrutiny of an institutional lender). There is a small “penalty” for doing this:

Since the house will change hands twice, there are additional transaction fees. But, since the sale from your parents to you is a “private party sale” (i.e. no broker/realtor commisions), the fees should be much less.

Your situation is a “special case” because not everyone who is upside down has parents who have the financial resources to buy a house with cash.

[gn]

23109VC,

That’s a very clever plan (having your parents acting as a mortgage lender to bypass the scrutiny of an institutional lender). There is a small “penalty” for doing this:

Since the house will change hands twice, there are additional transaction fees. But, since the sale from your parents to you is a “private party sale” (i.e. no broker/realtor commisions), the fees should be much less.

Your situation is a “special case” because not everyone who is upside down has parents who have the financial resources to buy a house with cash.

[Author]

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