What can i do when i cant sell my house or refinance for a lower payment?

Angelina
I bought a house in California almost two years ago. Now I need to relocate for a job. I can't sell my house because the market has crashed and I owe more then it is worth. For the same reason I can not refinance. I need to find a way to lower my payments so I can rent it out. Any suggestions? Please!

Letha
You are screwed!!!That is the problem with Sub prime loans.You get to buy in Cheap, and if propertyu goes up you make money.But not Credit has been tightened, and some people can't qualify for the new reality of interest rates.You lose...Figure a way to bail out and save your credit rating.Means..sell for what you can, pay off the loss on a regular basisAnd learn that making money is not easy and has lots of risks.

Les
I would say that this would be a situation where you need to contact your lender and try to work out an arrangement which works for both of you, because believe me, they do not want to have this wind up in foreclosure taking who knows what kind of loss on your property. You will have to find the right person to deal with and it may take a bit of time and it may be extremely frustrating and aggravating but it should turn out better for you than if you did not even try to arrange some sort of a work-out.

Felipa
Would you really want to risk renting it out to someone if you need to relocate? I would suggest doing a short sale on it, get what you can and sometimes maybe the bank can forgive the rest of the loan. If not then like the person below stated, pay the rest of. At least it wont be on your credit as a foreclosure. Or maybe you can work it out where you can just split the mortgage in half, the tenants pay a certain amount and you pay the other half, if its not too much of course.

Catherine
Contact an auction firm.

Adell
Ok there are a few things you can try. Yes you should first try contacting your mortgage company to see if you can work something out to lower your payments. Another option is whats called a "Short Sale" but you need to be careful and consult an CPA before you do anything. What a lot of people dont realize about short sales is that you pay taxes on the debt relief. That means if you owe $450, 000 and you sell for $350, 000 you pay taxes on the $100, 000 in debt relief (yes uncle sam always gets his no matter what.)