What is the name of your state (only U.S. law)? Florida
I have a job offer in a different state that I need to take for various reasons. When we bought our house, we bought it with 100% financing to avoid PMI and paid the closing costs out of pocket. Our loans (80% and 20%) were originally both with the same lender but were then bought out by two different investors administered to by two different banks. If we sell now, the amount we could get for our house would pay off the 80% loan with money leftover to go toward the 20% loan. The problem is, it wouldn't be enough. We would still owe somewhere around $20,000.00 - a sum we don't have except in our company 401K, and that would wipe it out.
Our realtor recommended we stop paying the mortgage (both) and submit for a short sale through a company they use.
A family friend in the mortgage business insisted that we remain current on our loan and work with the lender directly.
The mortgage companies insist they don't know what we're talking about with 100% financing and the larger lender insists that if we try to short sale, then they will deny it because they could be paid back in full. They say they don't work with paying the second lender off, but we've read that they DO.
This case is so weird because of the amount we could get. How should we handle it? We have excellent credit, and it would be nice to not lose it, but we also don't want to lose our shirts trying to pay off the remainder of our mortgage.
I have a job offer in a different state that I need to take for various reasons. When we bought our house, we bought it with 100% financing to avoid PMI and paid the closing costs out of pocket. Our loans (80% and 20%) were originally both with the same lender but were then bought out by two different investors administered to by two different banks. If we sell now, the amount we could get for our house would pay off the 80% loan with money leftover to go toward the 20% loan. The problem is, it wouldn't be enough. We would still owe somewhere around $20,000.00 - a sum we don't have except in our company 401K, and that would wipe it out.
Our realtor recommended we stop paying the mortgage (both) and submit for a short sale through a company they use.
A family friend in the mortgage business insisted that we remain current on our loan and work with the lender directly.
The mortgage companies insist they don't know what we're talking about with 100% financing and the larger lender insists that if we try to short sale, then they will deny it because they could be paid back in full. They say they don't work with paying the second lender off, but we've read that they DO.
This case is so weird because of the amount we could get. How should we handle it? We have excellent credit, and it would be nice to not lose it, but we also don't want to lose our shirts trying to pay off the remainder of our mortgage.
