When a Property Becomes Unaffordable

215k mortgage + 50k credit line from Chase.  USAF active duty, was counting on building equity for 2 years and cash out when I bought in 2007.  My duty changed, reducing my income by several thousands a year.  My work location changed from being 5minutes to 40minutes away.  I was breaking even for 2 years.  Cant continue this path anymore.  Looking to settle for a smaller mortgage, otherwise I will have to let the house go. 

Khanh

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Hello Khanh,

I would recommend that you contact your lender and request a loan modification.  A loan modification with a principal forbearance may be a solution.  At present, a “smaller mortgage” through a short refinance is not commonplace.

If after you’ve investigated the above and determined that the above are not an option or are not plausible then give me a call and we can talk about how I could purchase the property as a short sale.  If I purchase the property as a short sale then my loss mitigation company will do the short sale processing.  The goal is a full release of liability and a great short for another buyer.  You do not write a check to my loss mitigation company and as a matter of fact I write you a nominal check to purchase the property as a short sale.  So anyone that’s reading this should give me a call to discuss how we can get your short sale closed and you get the added benefit of working with yours truly and his team.

Read: May I Explain Loan Mods & Short Sales

Thanks for the questions and hope this helps.

Paul

P.S. I Buy Short Sales, so any homeowners or real estate agents that are reading can give me a call at 702.430.9390 for your buyer.