Want to move...is short sale appropriate

There is no lender / builder / realtor who can pull you out of your home if your underwater... you will need to satisfy the entire balance period. If you short sale your property, it will negatively affect your credit and you cannot use FHA financing until 3 years has passed since the short sale, so that's not a real option... There might be an option for you to do a refinance / rehab loan (FHA 203K rehabilitation loan). If you can do sufficient improvements to increase the value beyond the costs of rehab, new loan and current balance.. This one is a long shot, but it is an option.. best advice I can give you is to sit tight and let your equity grow until you have sufficient equity to sell it and move on.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hello Mrs Th, There are certain instances that you may have two FHA loans at the same time. However, based on the information that you provided it does not appear that this would fit your situation. New home builders will not be able to assist you at all due to their extremely limited financing options. It is best that you work with a Texas Based Broker/Banker. To be able to purchase a new home under any program FHA or conventional you must qualify for both mortgage payments. If the house has not been sold and the transaction closed then the new lender will count both mortgages unless you have someone renting your home AND you have 25% equity in your existing home , . One course of action would be to get a conventional loan for 3% down on an existing home. We offer these types of loans. The mortgage insurance is far less expensive than FHA and these programs are not offered by builders. A short Sale is treated like a foreclosure when qualifying for a home loan. So you would be unable to get another home for at least 3 years. Another thing is that county appraisals are not generally based on sales data because Texas is a non-disclosure state so the County Appraisal district does not know what homes sold for. As a result you may find that you get a sales based appraisal based on like properties that have sold within the last 3 to 6 months may give you a higher appraisal. Please feel free to contact our office and we can discuss your situation in more detail and we are Texas based and can offer many additional options that are not available to out of state lenders Sincerely, Henry J Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage Coach "Educating you to make the right financial choices for your family today and tomorrow" Direct/Text: (936) 228-1944 Woodlands Christian Business Network - Member Conroe Lions Club - Member & Publicity and PR Committee 2010-2012 What is "Servant Leadership?" - Proverbs 11:25 & Proverbs 3:27 Home Loans provided by Pilgrim Mortgage, LLC NMLS #225091 Henry J Daniels - NMLS #209419 Texas Residential Mortgage Loan Originator

Because your current loan is an FHA, there is no way you will be allowed to short-sale this home and get another one. FHA will hold this short sale against you, just like a foreclosure for 3 years. In the case of FHA, it is 3 years from the date FHA posts the loss in their claims records, regardless of when the close of escrow actually occurs, meaning it could be longer than 3 years from the actual close of escrow. Although most lender overlays prohibit it, FHA allows for a new FHA loan following a short sale under certain circumstances. Following the short sale of an FHA loan is not one of them. No one else will consider it. If your current home is upside down and on the market, it is presumed you will dump it back to the lender when you don't get a sufficient offer. Why? Because so many people in your situation have already set the precedent. You really do not have the option to do what you want. If you unload your current home, you will be a renter for at least the next 3 years. Based on your numbers, you are upside down less than $15K and you want to dump and run. Really? Here in Arizona, many folks are upside down $75K or more and are doing the right thing and sucking it up. Instead of bailing, consider an FHA streamline refinance to lower your rate and payment. Keep paying your current payment with the difference going to principal and you will likely be back in the black in just a few short years. Work with a local Mortgage Banker/Broker to get the best deal. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

You would not qualify for another FHA loan if you currently have one, you can only have one at a time. The short sale will mess your credit up for at least two-four years. Best bet would be to rent your current home and wait for HARP 3.0 to come out and then refinance that to a lower rate and then you could purchase another home with Fannie Mae for 5% down. If you purchase one on Fannie Mae's program: http://www.homepath.com/ You can purchase a home for 3% down with no MI. That is what I would suggest.

It is a little difficult to advise you with out some information about your income. If possible i would reccomend keeping your property and rent it out. You can purchase a new home and put 5% down on a conventional loan. However, for the purposes of qualifying, you will need to be able to carry both mortgages in your debt ratio, Contact your local lender and discuss with them, Best of luck!

I would speak with a TX mortgage broker. You can only have one FHA loan at a time. If you do a short sale you will not be able to qualify for any loan for about 3 years. You might want to consider renting out your home, but your income would have to be able to qualify with both mortgages. All the best!

ALL great advice, nothing more to add