I owe 345,000 on my house 8.0% it's only Worth 300,000 on the market I cant refinance my payments to high ?

Question

What do I do

Answer 1

With a $345,000 house and 8% interest, then you only have two options:

1) Have a $170,000 income.

2) Sell the house for whatever you can get.

3) If you can't sell it, and you can't make the payments, you will get foreclosed on.

If you can't make the payments, then you need to talk to your mortgage broker about a "short sale without recourse".

That's where you sell the house short of what you owe on it, but the lender (if he agrees) would have no recourse to come after you for the difference.

Answer 2

If you owe $345,000.00 and it is a combination of (2) loans then you might be able to use the new FHA program to refinance.

If not you would be required to bring in the difference at closing to complete a refinance.

I also agree with the other commetns of contacting the bank and explaining the situation.  However, i will warn you that they typically are unwilling to deal with you if you have not been late which is crazy but true.

Also a chort sale is an option but please be aware that it will be looked at by future banks / lenders as a foreclosure so be careful and do the best thing which might be to let it go to foreclosure.

If you would liek to discuss i would be happy to discuss

Kevin Weedmark - Owner

Granite Capital

[e-mail]

www.thegraniteteam.com

866-994-7264

Answer 3

1.  Keep the house and find a way to make the payments by renting out rooms, 2nd job, etc.

2.  Talk with your lender and negotiate a short sale where they will forgive the difference between sale price and loan amount.

3.  Stop making payments and let the lender foreclose.  In many states the mortgage is non-recourse, but check your documents and state laws on what happens when you walk away.