80k underwater, nj town getting worst. What are my real options?

[Ghosting]

I live in a former top 100 towns of the USA. The last 3 years have shown increase decline in education with increase in crime. I would like to move!

I can afford my current loan, however given comprables values my home just over 80k less then the principle amount of my mortgage. I don't have 80k in assets. I want my kids to have a decent education and have already placed feelers for other homes in areas with better education. How do I get out of this mess? Several homes in my area have been foreclosed and one house down the block has been sitting vacant for 2 years now. I am concerned.

What by laws are in place in NJ to protect me or the lender that I should be concerned with?


What is the best next step?
Thank you,

Concerned in NJ

[Evan Bedard]

I can afford my current loan, however given comprables values my home just over 80k less then the principle amount of my mortgage. I don't have 80k in assets. I want my kids to have a decent education and have already placed feelers for other homes in areas with better education. How do I get out of this mess? Several homes in my area have been foreclosed and one house down the block has been sitting vacant for 2 years now. I am concerned.

What by laws are in place in NJ to protect me or the lender that I should be concerned with?

Welcome and thanks for joining the community.

Unfortunately, since you are underwater you cannot just sell the property without going through a short sale. Be aware that since NJ is a recourse state lenders have the right to try and pursue a borrower for a judgement if you end up in foreclosure or short sale the home. Is there anyway you can rent out the property to cover most, if not all of the mortgage payment?

[Ghosting]

Unfortunately rents in our area are decreasing. Currently I would be lucky to get a rental to cover 1/3 of my mortgage and thus not making my move affordable.

So I'm stuck in an area on the decline because I make more then those in financial hardship but not enough to afford an underwater home and a second home. Surely there has to be something else I can do?

Would it be wise to consult the lender about this situation?