Am I a Short Sale Candidate?
I have owned my home in MD for 10 years, and am current on my mortgage. My home is worth $56,000 FMV, first mortgage balance is $50k, second is $1400. But, houses on my street are going for $45-55 average and take forever to sell.
The home needs a roof and a furnace (including asbestos removal) which altogether will total around $8-9k. I have not been able to borrow the money to make these repairs, and if I could it would just add a larger second mortgage.
I can not stay in the house any longer, need to get out of a dangerous drug neighborhood. Once I move I won't be able to pay both rent and the mortgage. House has been on the market on&off for three years, with very little activity.
I am thinking about moving, letting the mortgage get behind, and trying to "get out" without killing my credit through the short sale approach. Does it sound like a feasible plan?
Thanks for any and all advice.
There is no need to let your mortgage(s) default. Really, a fourteen hundred dollar second mortgage?
Though it is unusual, I've known mortgagees that have allowed a short sale... even though the loan was current.
My guess, is, if a short sale is necessary, the second may agree to release it's security interest, but require you to honor the note.
If you need a recommendation for a participating (short sale savvy) broker, email me.