Thread: What should I do...in order no to lose EVERYTHING?!

Originally Posted by anikonitto

I have owned my house for ten years now, and almost 2 years ago I had a great opportunity to buy a second house, in which I succeeded on March 27, 2007. I then pulled out my equity from my first house to invest it in the second for remodeling purposes. (During the crash of the Real Estate market) I tried to refinance my new house, which the bank rejected. And then my old house turned upside down.
I owe $391, 000 on my old house, and the comparable homes in the area are going for $330,000 (if lucky). I bought my new house for $590,000, invested $300,000 in it, and it was recently appraised for $1,350,000. I haven't been able to pay mortgage on either house for a month now.
So my best option would be a short sale on my old house.
Right now, I'm also trying to sell my new house, without much luck so far.
So my question would be, how is the short sale of my old house going to affect the other?
Or does anyone have a suggestion otherwise for both houses?

So, first of all why have you not been able to make either mortgage payment?

To answer this question it is necessary to know more on your finances. If you would like a answer on how to handle your current situation please private message me with your monthly income and your financial responsibilities. This will allow me to make a detailed suggestion based on the best moves to make for you in your financial situation.

My suggestion if you could make the payment on the old house if you did not have the new one is to keep reducing the price on the new one until it sells. Even in a slow market, a home will sell when it is percieved as a good deal.

Can you rent out either of the homes for close to a mortgage payment (obviously that's more likely on the older home)?
You may also want to talk with thelenders' Loss Mitigation Depts to see if they have any programs in place to help you in the short term.
And I agree that you'll just need to lower that price on the new one and make it as good a deal as possible to buyers.

You have quite a bit of margin in the new house, your expenses are ~$900K, trying just getting arid of it, drop the price down low. If you loose both of your homes to short sale or foreclosure your future buying power will be grim.

My suggestion is to drop the prices of both homes and get them sold. The quicker you can accomplish this the less likely either one will go to foreclosure.

It sounds like you have plenty of flexibility with respect to how much you can sell the new home for. The bottom line is you need money and you need it fast. You need to be practical and forget how much the home is worth TO YOU. A home is only worth what someone is willing to pay, regardless of what an appraiser says it's worth. Sell it for what you can get and use the money to get back on your feet.