I have a 30 year mortgage and, like many, have fallen onto hard times. I can move into another house which I own that has NO mortgage payments. I do NOT want to hurt my credit by defaulting on my mortgage payments. How would I get someone to take over my mortgage payments (sell that house) so that they can own the house and not me?
You can’t unless the mortgage is assumable, which the vast majority aren’t. The only way to get rid of the house is to sell it outright to someone getting their own mortgage to buy the house. Obviously, if the house is underwater/upside down, you would have to do a short sale which will harm your credit. Your other alternative is to rent the house out and hope that the rent covers the mortgage payment (or at least the majority of the payment, making it easier on you). Of course, this path brings with it the headaches of being a landlord.
Not many mortgages are assumable, so it simply may not be a possibility. The simplest path would be to sell it for the pay off amount. If you are in a real hurry you could even call those “we buy houses” companies to see if they would take it off your hands. But it might be in your best interest to keep the house and rent it out below the mortgage payment (if you have to) and take the monthly loss as a tax deduction at the end of the year because once you move out it will become your investment property instead of your primary residence. Or you could simultaneously try to sell it for a profit (if any exists). Good Luck
There are several possibilities. One is to rent the home to cover the mortgage payment plus taxes.
Secondly, Lease with option to buy. That would allow lessees into the home immediately and payments would be made for you until you can effectuate the purchase.
2 ways. One way is to rent the house out. Don’t expect that rent payments will completely cover the mortgage payments. Eventually, the market will improve, increasing the value of the house to a point you can sell it AND you will be paying down the mortgage. You don’t have to manage the property. You could get a property management company to find a tenant and handle repairs. That would cost 10% of gross rent plus repair costs.
The other way is to lease the house with an option to purchase. The structure is to have a lease and an option to purchase the property 2-3 years down the road at a set price (the lease and the option should be 2 separate documents). This way, you will get a tenant/buyer to come in, make an option payment of ~$2,000, pay a little higher-than-market rent for 2-3 years, and either exercise their option (i.e. buy the house at the agreed-upon price), or forfeit their option money. It sounds complicated, but a good real estate attorney can prepare the documents easily.
Try to consult a professional in this area. Try to work with your bank. Just hang in there, as hopefully these tough times will come to pass. Here’s an informative article on tips to avoid mortgage defaults, and one of them includes what you are doing–working on and not ignoring your problem:
http://yourhandymanzone.com/Your_Handyman_Zone_How_To_Pages_Real_Estate_Zone_Buying_Your_House_Mortgage_Default_Avoid_Foreclosure.htm
Hope you find this helpful.
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