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I'm not sure if this is the right forum for this question but maybe someone can help. We currently own a home that is worth about half of what we owe on it. If we were to buy another house (say a short sale that appraises at more than the sale price) would it be possible to sell our current home for less than the total owed, but roll the remaining into the new mortgage? Hope I'm making sense...
extisting mortgage rolled into new one
Hi Guest,
It is possible to roll the existing mortgage into the new one, provided your bank or lender agrees to it. So you can first contact your bank and inquire into the matter. Some banks allow the debtor to roll the existing amount into the new mortgage, some banks don't allow. They require you to pay for the deficit amount.
But it is always better to pay off the remaining amount of the mortgage, after the short sale. Rolling the extra amount into the new mortgage can add to your problems. That may amount to much more than what you owe now.
Actually a short sale means that the bank agrees to less than than the full value of the mortgage to satisfy the mortgage so you wouldn't roll any amount into the new mortgage.
the problem with rolling any money owed into a new mortgage is that
1. you would owe more money
2. you can't qualify for a mortgage that borrows more money than your new house is worth. In fact it is pretty hard to qualify for a mortgage that more than 80% of the value of the new property.