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Marmac, you're right, that could be a problem. My husband is still employed and makes excellent money so hopefully the loan could still be an option for us. I'm also hoping to be re-employed fairly soon, not that it makes any difference in the here and now.
What you are describing here is not unlike being upside down in a car loan. When people " trade" in the old car...owe more than its worth in trade in value, then finance the shortfall and fold it into the new loan on the new vehicle.... I wonder if there are banks out there that would work this way ? I can see where a Bank has vested interest in a housing developement , and the developer wants to sell houses where this could be a win for everyone. Puts the home owner deeper in debt , but thats what happens everyday in the car financing world. We could be headed to a point where buying a car is little different than buying a home. They are getting closer in value in some markets where this way of doing business seems like practical. Home financing is way strung out anyway. No loan should be more than 15 years , just like financing a Motor Home, or a trailer house.
I'm willing to say not in our lifetime. Let's say you were short on a BofA payoff - once that happens they will not want to extend you additional credit above and beyond the short amount, into a new loan. And Wells would definitely not want to add debt to their collateral.
Okay......never say never, the government may just invent a program to make the banks add the short to the new loan, but the banks would not do it voluntarily.
Just wanted to update. After spending an hour and a half on the phone, mostly on hold, and being transferred to six different people the final answer was that they will only do promissory notes for people doing short sales and since I don't qualify for a short sale they can't/won't do anything for me.
I think our next step is to look at taking out a personal loan to cover the difference. After four weeks on the market we still have no showings. We have an open house scheduled for Sunday but I don't think it will generate anything unless we can significantly lower our price.
I completed the short sale of my condo in Minneapolis just about 1 year ago, I did sign a promissory note and my credit report still got dinged with the "Short sale" at the same time the promissory note that I have been paying for the last year does not show in my credit report.. I am tempted to stop paying and save me 200 a month for the next 9 years any advise?
Last edited by Uriel Nunez Valles; 09-16-2011 at 02:23 PM..
Reason: make more clear
There are many people that have been living in their homes for 2-3 years , for free. The Banks are so backed up ,and they do not want to disclose liability as to assets and foreclosures until later , like next year or longer. Everyone is waiting for the home markets to improve all across the country. In some areas that is happening now. , or , never went dow all that much in the first place. Mostly rural northern tier states, and , NYC..
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