Reply to Tell me how to get out of my underwater house

Forum Index » Real Estate

Reply to "Tell me how to get out of my underwater house"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Here is what we did.  It won't necessarily get you out of the house any time soon, but (1) we didn't need to be out any time soon (we've been in 6 years and would like to be out in another 4-5 years) and (2) we feel better about where we stand and like we took control of the issue.

We were close to $40k underwater.  Because rates are so low, we spoke to a broker and refinanced.  You don't always have to have 20% equity to refinance.  We brought cash to the table equal to the underwater amount, plus enough extra cash to create 5% equity.  This reduced our monthly payment by over $800/month.  That $800/month goes straight into our savings to replenish what we took out.  We saw this as our best option because we didn't have enough cash (and wouldn't any time soon) to bring cash to the table to sell, plus pay the realtor fees, plus have enough for a good down payment on a new house.  We also couldn't rent it out because the monthly payment was too much higher (in our minds) than what we could have rented the house out for.  So now we have a little equity and we're slowing building more (not by the value going up of course, just by paying down the mortgage a little each month) and we're building our savings back up for a down payment on a house down the road.  It's not an ideal situation obviously, and it also obviously requires that you have substantial cash that you can let go of, but sitting around feeling stuck was driving me crazy.  I suppose we're still "stuck" but I feel like we're in control a little more now.    [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics