Want to buy bigger, but upside down?????? - Loan Modification Forum

upsidedown11 · 07-01-2009, 08:51 AM

My wife and I bought a town home May 2007 in California for $510,000. We put zero down and have two loans (80/20). First is 30yr fixed rate, interest only for 10yrs. Second, is 30yr fixed conventional. Our total monthly payment including taxes, hoa, etc is about $3600.
Our latest assessed value is 330k which puts us about 180k upside down. Our plan was to be in the town home for 2-4 yrs and then sale and purchase a larger home to start a family. However, the way property values are, its not likely to be able to sale any time soon.
Which leads to my questions?
Our income allows us to “qualify” for the purchase of a second larger home, but how can we get rid of our existing town home? I have heard about Buying the second home and short selling or deed in lieu of foreclosure on the town home. Can anyone help or lead me to someone that can answer my specific questions? What are my options, if any? Thank you.

Evan Bedard · 07-01-2009, 12:16 PM

Hi Upsidedown11,

Welcome and thank you for joining the forum..

A short sale or dee in lieu would probably be best for your situation. You may want to consult with a lawyer to discuss your best option..

Also lenders will not do either unless the house has been listed for at least 90 days.

Paul Molinaro Esq. · 07-03-2009, 03:48 PM

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

The process of buying a new home and letting the old one go... is called "buy and dump" and is frowned upon... some frown at the unethical implications and some frown because it can be considered fraudulent (and illegal) in some cases.

- Paul

07-01-2009, 08:51 AM	#1 (permalink)
upsidedown11 Junior Member Join Date: Jun 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Want to buy bigger, but upside down?????? My wife and I bought a town home May 2007 in California for $510,000. We put zero down and have two loans (80/20). First is 30yr fixed rate, interest only for 10yrs. Second, is 30yr fixed conventional. Our total monthly payment including taxes, hoa, etc is about $3600. Our latest assessed value is 330k which puts us about 180k upside down. Our plan was to be in the town home for 2-4 yrs and then sale and purchase a larger home to start a family. However, the way property values are, its not likely to be able to sale any time soon. Which leads to my questions? Our income allows us to “qualify” for the purchase of a second larger home, but how can we get rid of our existing town home? I have heard about Buying the second home and short selling or deed in lieu of foreclosure on the town home. Can anyone help or lead me to someone that can answer my specific questions? What are my options, if any? Thank you.

07-01-2009, 12:16 PM	#2 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Want to buy bigger, but upside down?????? Hi Upsidedown11, Welcome and thank you for joining the forum.. A short sale or dee in lieu would probably be best for your situation. You may want to consult with a lawyer to discuss your best option.. Also lenders will not do either unless the house has been listed for at least 90 days. __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

07-03-2009, 03:48 PM	#3 (permalink)
Paul Molinaro Esq. Attorney Join Date: Mar 2009 Location: 980 Montecito Drive, Suite 206, Corona, CA 92879 Posts: 133 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Want to buy bigger, but upside down?????? NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE. The process of buying a new home and letting the old one go... is called "buy and dump" and is frowned upon... some frown at the unethical implications and some frown because it can be considered fraudulent (and illegal) in some cases. - Paul __________________ ______________________________ Paul J. Molinaro, M.D., J.D. Attorney at Law, Physician, Broker ______________________________ Fransen & Molinaro, LLP 980 Montecito Drive, Suite 206 Corona, CA 92879 pmolinaro@LoanLaw.net 1-888-756-2652 ______________________________ The information contained in this post is NOT to be taken as legal advice. My posts are for general information and educational purposes only. If you need legal advice, please contact an attorney.

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