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Selling/Renting options with little/no equity

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skittles46

Junior Member
What is the name of your state? - TX

I own a home that has been used for our primary residence up to this point. We are relocating to Oklahoma, and have been left in the position of dealing with the house. When reading through my paperwork, it says that I am not able to rent the property, or that in and of itself gives the lender right to foreclose. We would be open to renting, if there were a way around that, as we have a GREAT fixed rate on the house due to several special programs (of course thats also why we can't rent, or sell to an investor, without it being foreclosed on).
I'm looking for options, other than a traditional sale at the moment. The home is a small amount short of being worth what we still owe on it, and we have no money for closing costs/agent fees, etc in order to complete a sale. We can afford to make both payments (OK is a rent house) for a short time, but would that just postpone the inevitable? The house in TX is in a poor neighborhood, and it took the city (previous owner), 5 years to sell it at the price we paid for it (ok, so yea..that should have told us something, but it seemed like a great deal at the time).
We currently owe $46K on it, county assesed it at $38K, but I don't know if that would be the same as an appraisal for bank value :confused:
An investor friend of ours has advised talking to the lendor, and seeing if the would allow us to rent it out anyhow. Is this even worth a phone call? If so, how would you go about getting that kind of thing in writing, so they can't just say they never said it was ok...

Another not so always wise friend of ours swears that there is a "quick sale" option of some sort, where the bank just purchases it back for the remainder of the loan, but I have my doubts to its existence, or at least its application to this case.

Any advice would be appreciated as to how to best rectify the current situation. Thanks.
 


HomeGuru

Senior Member
What is the name of your state? - TX

I own a home that has been used for our primary residence up to this point. We are relocating to Oklahoma, and have been left in the position of dealing with the house. When reading through my paperwork, it says that I am not able to rent the property, or that in and of itself gives the lender right to foreclose. We would be open to renting, if there were a way around that, as we have a GREAT fixed rate on the house due to several special programs (of course thats also why we can't rent, or sell to an investor, without it being foreclosed on).

**A: yes, you got an owner occupant rate. If you pay the investor rate on a refi, I am sure you would be able to rent.

**************
I'm looking for options, other than a traditional sale at the moment. The home is a small amount short of being worth what we still owe on it, and we have no money for closing costs/agent fees, etc in order to complete a sale. We can afford to make both payments (OK is a rent house) for a short time, but would that just postpone the inevitable? The house in TX is in a poor neighborhood, and it took the city (previous owner), 5 years to sell it at the price we paid for it (ok, so yea..that should have told us something, but it seemed like a great deal at the time).
We currently owe $46K on it, county assesed it at $38K, but I don't know if that would be the same as an appraisal for bank value :confused:
An investor friend of ours has advised talking to the lendor, and seeing if the would allow us to rent it out anyhow. Is this even worth a phone call? If so, how would you go about getting that kind of thing in writing, so they can't just say they never said it was ok...

Another not so always wise friend of ours swears that there is a "quick sale" option of some sort, where the bank just purchases it back for the remainder of the loan, but I have my doubts to its existence, or at least its application to this case.

Any advice would be appreciated as to how to best rectify the current situation. Thanks.
**A: visit ALL options. Do more research and talk to some Realtors and mortgage people.
 

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