Need Help BAD

**dustinr** · 03-22-2010, 10:53 AM

Hello!

I purchased a home with a friend of mine in May of 2005. We purchased the home for $312K. The home is now worth $195K. The principal balance that we owe is $249K. I live in the house and have been paying on an interest only loan.

My wife and I would like to get out of the house and purchase a new home since home prices are so cheap.

Unfortunately since we own the home with my friend, we do not qualify for much. My friend agreed to sell the homewith us and take the loss.

My question is what do you recommend? I don't think we can Short Sale because we both make a pretty good amount of money. My wife and I can not come up with the money to split the remaining Loss on the house. Can the bank create a loan from the excess money?

I would love to hear everyone's opinions and recommendations. Thank you!

**Chrisopher Moltisanti** · 03-22-2010, 11:22 AM

Okay. Well, if you're friend is willing sell the house with you and you both take the loss: go for it. It's going to be a while before you see any turn around to where you and your friend are going to break even. If your friend agrees, don't push your luck.

The answer is "no" you won't qualify for a Short Sale. Short Sales are all about finances. You have to be in dire financial straits (and the bank has to be in a good mood that day), to even think of talking to you about a short sale. Even IF they do, the closing WILL take months. You wanna wait around that long? And continue to throw good money after bad money away on a place your wife doesn't want anymore? She's sending you a signal: Let's get out now!

If you and your wife are ready to move on, take what you can get with the loan amount, sell this place while your friend still agrees.

Good luck now.

CM

I'm not an attorney. I advise you to speak to qualified RE counsel for further matters.

**dustinr** · 03-22-2010, 12:24 PM

Thanks Christopher for your reply. I am glad you see it that way!

We were originally thinking he might just Assume the loan, however, he doesn't want to be a landlord.

Does anyone have any ideas on how we could get a cheap loan to cover the costs of our loss? Can banks create a loan based on loss of home price?

**Chrisopher Moltisanti** · 03-22-2010, 12:52 PM

I've personally have never seen a bank grant a loan based on a loss. Think about it. You go to a bank and ask for a loan. After they ask you for how much, they ask you for what? Right? You can't very well tell them "Uh, I uh, I, for the loss on a _____". The banking system doesn't work that way mate.

I don't blame him for not wanting to take on the responsibility of being a landlord.

Since you and your wife (who has told you numerous times I'm sure), are ready to get out, just sell it, take the loss. It'll be okay. Life's too short man. Stop throwing away your money. Interest only or not.

CM

I'm not an attorney. You should seek competent RE counsel for further matters.