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Is there a special loan to pay off existing mortgage if we have to sell for less then what we owe?

Emily B - 2009-10-01 17:25:14 - Renting Real Estate

We need to sell our home right away because my husband was transferred for his job. We don't have a lot of time to sell and I'm afraid we will have to sell for less than what we currently owe. Is there a "bridge" type of loan available to pay off our current mortgage?

Best Answer:

There is something called a wrap around mortgage where you basically are paying off your new mortgage and the difference in the old mortgage. USUALLY BAD IDEA. Talk to a real estate attorney.

Answers:

Be very careful.. What you are describing is a Short Sell. This must be approved by your lender and it can be treated as a foreclosure on your credit report. A bridge loan is when you have a lot of equity in your property and it does not appear that this is your situation. If you are upside down on your mortgage maybe you can rent your current home or will your husband's company buy the home in a transfer package?? New mortgage rules state that if you have to rent out your existing home the lender will have to carry both homes against you unless you have an appraisal of the rented home with a loan to value less than 80%.

No you pay the difference unless you can convince your lender to allow a short sale

There is something called a wrap around mortgage where you basically are paying off your new mortgage and the difference in the old mortgage. USUALLY BAD IDEA. Talk to a real estate attorney.

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