Your Local Home Advisor

Is Wachovia your lender? Are you Upside Down?

Posted by Connie Gohata on Sunday, February 7, 2010 Under: Upside Down
Wachovia is making it easier for a homeowner to sell their home in a short sale.  If you are upside down or if your payment is going too high and you owe more than your home is worth, this is the time to take advantage of the situation.  Wachovia is being "user-firendly" and will give approval for a short sale in record time.

If you bought your home in the past 3 years, or have refinanced out of your compfort zone, you may be in luck.  You can sell in a short sale and buy a new piece of property in less than 2 years time - that means you can get into a similar home that your are currently living in, and get it at a lower price.  This means you won't have that nastly thing called an upside down loan, and you will be able to afford the payments, again as you qualify for the new loan.

What did I say?  OK, here's an illustration.

You bought your home in 2006 for $650,000 with one of those Option ARMs.  You found out last year that your home is only worth $450,000 in today's market.  You owe $550K, which means you are upside down.  You sell with a short sale, get your credit fixed up in 18 months, and then start looking for a similar home that you had to leave behind.  

You find a similar home, but now it is for sale for $450,000.  It is in the same neighborhood that you used to live in, and you immediately fall in love with the home.  You get an FHA loan for 3.5% down - and only have to put $16K down.  You can then buy the home and you don't owe $550, you only owe $436K.  That means in 2 years you bought a home for less than you used to owe, and now you can afford the payments on your fixed-rate loan.  Yay!

In : Upside Down 

About Me

Connie Gohata I am a Realtor and Broker in OC, expanding into Buena Park, Cerritos, Cypress, Garden Grove, Anaheim, Long Beach, and Los Alamitos/Rossmoor. My office is now in Santa Ana: 1600 Broadway, Suite 100!! Come to Citivest!

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