How to get out of a mortgage????

Sooo how do you get out of a mortgage??? I'm currently payin about 1000 more a month than I should be on a house thats not on a fixed rate mortgage. It is also in a not so good neighborhood so especially with the market the way it is it'd be impossible to sell!!! :( I own a business which is about 1 hour 30min away from my house so commuting everyday is not only a headache but costly with the price of gas. I NEED to move closer, but dont see a way out of my house... If I don't pay it, will that tarnish my credit? or forclosing? Or is there another way out???

PLEASE PLEASE PLEASE help! I don't know the laws for it either so i'm on foreign ground, but i need to move in at most 2 months. Does somebody know how????

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  • 1 decade ago
    Best Answer

    Under the new law that George Bush signed in Nov or Dec 2007....you can get out from under your house.

    The President signed an act called...Mortgage Forgiveness Debt Relief Act, sparing homeowners the tax burden associated with canceled mortgage debt.

    Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was considered taxable income. The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014.

    Your options are: Short Sale, Deid in Liu, & Foreclosure. Your best route is a short sale. It will not effect your credit as horribly as a forclosure. You will need to talk to your mortgage company, see what options you have. They will let you know the step by step process.

    You will also need to get a real estate agent and get it up on the market asap! You can't do a short sale w/ out it!

    Source(s): Went through a short sale in Nov and now going through the tax prep w/ my accountant to be releived of what the mortgage co wrote off....if you have any questions please feel free to email me.
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    4 years ago

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    5 years ago

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    RE How to get out of a mortgage????

    Sooo how do you get out of a mortgage??? I'm currently payin about 1000 more a month than I should be on a house thats not on a fixed rate mortgage. It is also in a not so good neighborhood so especially with the market the way it is it'd be impossible to sell!!! :( I own a business which is about 1 hour 30min away from my house so commuting everyday is not only a headache but costly with the price of gas. I NEED to move closer, but dont see a way out of my house... If I don't pay it, will that tarnish my credit? or forclosing? Or is there another way out???

    PLEASE PLEASE PLEASE help! I don't know the laws for it either so i'm on foreign ground, but i need to move in at most 2 months. Does somebody know how????

  • Hugh
    Lv 6
    3 years ago

    For Finance and credit solutions I recommend this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=Jf...

    RE :How to get out of a mortgage????

    Sooo how do you get out of a mortgage??? I'm currently payin about 1000 more a month than I should be on a house thats not on a fixed rate mortgage. It is also in a not so good neighborhood so especially with the market the way it is it'd be impossible to sell!!! :( I own a business which is about 1 hour 30min away from my house so commuting everyday is not only a headache but costly with the price of gas. I NEED to move closer, but dont see a way out of my house... If I don't pay it, will that tarnish my credit? or forclosing? Or is there another way out???

    PLEASE PLEASE PLEASE help! I don't know the laws for it either so i'm on foreign ground, but i need to move in at most 2 months. Does somebody know how????

    1 following 11 answers

    Source(s): For Finance and credit solutions I recommend this website where you can find all the solutions. http://SMARTFINANCESOLUTIONS.NET/index.html?src=Jf...
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  • 1 decade ago

    I'm afraid you're in the same boat as all the other Americans that are making headlines every day. You're upside down on a mortgage they gave you for probably little or no money down, and it's an ARM, right? So you are looking at your rate jumping up soon. The greedy mortgage industry and gullible buyers are both to blame for this mess. Your only options at this point are to rent the property or find some roommates. The situation will likely improve in a couple of years, but not soon enough for you.

    And yes, if you don't pay, it will most certainly tarnish your credit. If you foreclose or file bankruptcy, it will follow you for the rest of your life, and you will not be able to do anything with credit for the next 7 years at least. I highly advise against it.

    Source(s): Been there, done that.
  • Anonymous
    1 decade ago

    If you can show your lender that the pricing adjustments are unaffordable for you then you might be able to negotiate a short sale with your lender/bank. The bank won't just let you walk from the loan but if you can show that you will have to foreclose if something doesn't change, the bank will, most likely, work with you.

    Foreclosing on a home is expensive for a bank. If they're gonna lose the money anyway on a sale of a home they might as well save themselves the cost of foreclosure and allow for the short sale.

    Call the lender/bank today!! and be able to show them (income vs. expense) that you cannot afford the payments and that you don't want to default on the loan. Ask for help and they might give it to you.

    Whatever you do, don't pay your mortgage late. That will cost you money (worse rate) the next time you buy a house.

  • 1 decade ago

    Your remedies are in the past and you should not have gotten into a mortgage beyond your means. However, that does not help for now.

    You are now locked into a mortgage and a house that is not in your best interests, but you are bound by the agreements that you signed. You may be able to renegotiate with the lender for a more favorable payment or interest rate.

    If you allow foreclosure and don't adhere to the payment schedule you are looking at a major flaw on your credit history. If and when you need another loan this will continue to haunt you.

  • 1 decade ago

    you have two options, 1. you can sell your house under the market price so one will buy it even if in a bad neighborhood, Option 2 is to get a new mortgage at a new bank for lower intrest rate, but u will have 2 pay a fee too close your old mortgage

  • 1 decade ago

    I hate to say it but you are learning a lesson in being responsible for the decisions you make. You made the decision to buy in a bad neighborhood with a loan you couldn't afford so far away from your work.

    If you don't pay you can bet it will tarish your credit rating. That's what it's for, to identify people like you that are risks to the bank.

    Your best option is to sell the house... even at a loss. This will cost you but it will save your credit. I'd recommend finding a good realtor.

    That's is unless you think you can rent it for $1000 more than fair value.

  • 3 years ago

    What asses some of you people are. A person asks for advise and you lecture him on it being his fault.

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