How do i get rid of a house that i cannot afford cannot refinance and cannot sell?

Cindie
I origianlly purchased my house and then refinance it at 100% on an arm. I purchased another house closer to work and am living in that house now. The intention was to rent out the first house to cover my payment. Now my payment has increased due to the arm. I cannot refinance since I no longer live there. The renters did not work out and the rent no longer covers my payment. I cannot sell because the house is no longer worth what is against it. Help!!!

Anton
It's called a short sale. If you find a buyer for your property your agent (hopefully one experienced in short sales) can negotiate with your lender for them to accept less than the loan balance as a payoff for the loan. It's cheaper for them to let you sell it, than it is for them to foreclose, evict, and sell it themselves.

Del
Rent it out that would be the best thing to do>

Louis
lets thinks about this, seriously what are your options.you can refi the house you are living in now and take cash out to float your other home payment until you get a renter, you can pull money from your 401k float payments until you get a renterYou can get roommates to live with you to help pay your paymentsyou can sell the house you are living in and move back to the other one you cant rent out.

Glayds
like most people caught in this trap, you are kind of screwed. You have a couple of choices. 1) find new renters and increase rent (yeah right) 2) sell at a loss, using equity in your current house or a personal loan to cover the amount you still owe 3) start working a second job to cover the second house 4) bankruptcy (talk to a lawyer) 5) let the bank reposess the first house and kiss your good credit goodbye.

Alta
Talk to your mortgage lender I'm sure this problem has come up before. You may have to sell it at a loss. I'm sorry that you didn't research your refinancing before you did it. A Realtor may help you for a small fee that would be better than ruining your credit rating.

Elma
Sorry to tell you, but there's no way to sell a house for more than it's worth, especially when the housing market is so weak. You've bit off more than you can handle.You have basically two choices: sell the house for less than what's owed, and bring the extra amount owed to the closing in cash. You might need to take a cash advance off your credit card in order to pay it off, but you made the loan, so you have to pay it off, one way or another. Another possibility here would be to ask your mortgage company to attach the leftover balance to your current house as a 2nd mortgage. They won't be thrilled by the idea, but they may realize that they don't have much alternative if you can't get out of this house any other way. If you're desperate, you might just have to give the house up in a foreclosure, and that would be the worst of all things.Your second realistic option is to just keep renting the house out and kick in the extra hundred or two out of your paycheck every month to cover the mortgage. I don't think that's an outstanding idea, but it might be your only alternative. A third option, if it's possible, is to sell your nicer home and move back in to the older place. I know that isn't your preference, but you're in a pretty desperate situation, and you're going to have to do something drastic to get yourself out! So, keep an open mind.

Cheryle
Arson is not recommended.

Maegan
Sell it, even if you take a loss, because it is horrible to lose a house in foreclosure. Your only other option is to do a deed-in-lieu, but that's only if the mortgage company will accept that. Sorry, a deed-in-lieu is when you hand over your deed in lieu of losing your house to foreclosure. I would try to rent it again, though you may have to pay some of the mortgage on that house. Or I would sell it, take the loss, and walk away.Don't foreclose, it's horrible and there's no guarantee that you won't owe money anyway.

Gearldine
Well I'd try and rent it again, run an advertisement in the local paper. Check the references. Maybe rent it with the option to buy. If you cannot do that then chances are your going to lose it, as in forclosure. Call your mortgage company and see if there is something you can do. Just try every option you have. I'd still sell, because it's better to sell and owe, than having a foreclosure against you. All the best.

Glory
You didn't say anything about how much of a gap remains between the amount you could get for rent and your payment. If you can cover the difference, keep renting it out and use the tax benefits to offset your personal income tax liability. Consult your tax advisor as you may end up breaking even or even "cash flowing" after taxes - one of the purposes of owning investment real estate. Adjust your withholding at work to free up cash in each paycheck until you get this settled. Hopefully your are making the interest only payment as a minimum if you have a pay-option ARM. If you are making only the minimum payment and are accruing additional principal, you have an urgent problem. Talk with your lender (not your loan agent) and see if they are willing to work with you.I would avoid handing back the keys and walking away as that may be a much more expensive solution in the long run.Talk with some real estate folks and get their honest opinion of value - get referrals from family and friends. If you do re-rent it, hold out for the good credit tenants or charge the maximum security deposit allowed by law if you simply must get someone in there. Then, hope they pay!You are not the only one in this situation. Keep researching and feel free to email directly with questions. Solutions exist and you WILL find the right one for you and work things out.

Tara
Go to the mortgage lender and turn over your keys to them. Have them draw up a paper stating your agree to give up the property to them. Let them forclose on you. If they refuse the keys...seek legal advice. There are free organizations that offer this called "Legal Aid". Good luck!

Janiece
Depending upon how much the rented house is worth and how much you owe, you may have to go to the closing with cash in hand.Just because you don't live there doesn't mean you can't refinance. It is only considered a non-owner-occupied property. The rate will be slightly higher.An option would be to consider refinancing the home you live in now (if there is equity) and pay down the rental, allowing the rent to cover all or at least most of the total mortgage payment.email me some specifics and I can send you a written analysis of at least a few different options that you can bring to your lenders to ponder.I've been in the business for almost 2 decades and I'd be more than happy to arm you with the knowledge to get you the best deal wherever you are.I am only licensed to lend in a few states, so this is by no means a solicitation. I'd just like to help.