If you have inequity in your home is there any creative ways to get out of your mortgage?

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I have a neg am loan,is it possible to trade my home in on a cheaper home like you would with a car ? who would I need to speak with to look at proactive mortgage solutions to avoid forclosure?

3 Comments
  1. Reply
    Miss V
    April 29, 2011 at 11:41 pm

    These solutions aren’t usual because as opposed to trading a car, real estate is a completely different product.

    If you feel you are heading towards foreclosure contact HUD if it is a government insured loan. They have ways, including extending the length of your loan, to help you keep your house. HUD, just like banks, don’t want to own your home.

    And tell your friends and others to stay away from ‘lenders’ like ditech, who provide 125% of a loan. The problem is that when these home equity loans are being paid back, the borrower owes more than the value of the house.

  2. Reply
    fitpro11
    April 30, 2011 at 12:20 am

    You’ll want to speak with the bank to make them aware that you need some creative financing options RIGHT NOW, so they can scramble to help you. If they don’t seem interested, walk up the chain of command until you GET them interested, because for the money they are making from you, they can WORK a little to EARN it. Make sure to suggest the option of trading down and that you’d be interested in using them for the next mortgage — if that’s true.

    Beyond that, I’d look for your realtor, or a new one, and get looking and anticipate the new place.

    I’m assuming that you’re aware that you can’t do all this in one transaction. You have the INTENT of stepping down, but you’ll in fact probably be selling the house at a loss (as far as the bank is concerned) and then financing the next one in a new mortgage, hopefully a fixed rate.

    SO much better to step down than to step into bankruptcy — admirable choice you’re making.

  3. Reply
    godged
    April 30, 2011 at 1:09 am

    You cannot trade in a home. You have to sell yours and find a cheaper one. If you owe more than the home will sell for, you will have to pay the difference.

    Call your lender, many are taking a position to try to help their clients that may be facing foreclosure.

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