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I have a condo I’ve been in since 1998. Like many, I’m upside down. I owe about 130k and it’s worth MAYBE 60k. I’ve never been late 30 days on it. I make about 70k/yr and my payment is about $ 670/mo now as I did qualify for a remod last year which brought int.rate down to 4.37% over 40 years so brought payment down.

I really want out and into a new home. I can’t rent in my community because of the cap they’ve reached. So now I either have to qualify for 2nd home with my income which I may be able to do OR short sale the condo but I’d rather not have to wait another 2-3 years to repurchase.

Other pertinent info:

I have VA certificate which I’m currently NOT using on current property.
I have BK that will fall off my credit report in October of this year.
On CCCS to alleviate credit card debt and will be through with that within 6-12 mo.
Credit clean other than that.
With Wells Fargo on current mortgage. I don’t have a 2nd. Only a first.

Thanks for your knowledge if you can share.

2 Thoughts on I want out of my condo and into a new home. Please advise best way to accomplish.?
  1. Reply
    October 28, 2011 at 2:22 am

    You can not do a short sale without your lenders approval. The lender will NOT approve a short sale if you can financially meet your obligations to pay the mortgage.

  2. Reply
    October 28, 2011 at 2:39 am

    You had me until you mentioned CCCS.
    With your income and your current mortgage payment, you would qualify for another home under the VA program with no money down.
    When you say your BK will fall off your credit report, that happens after 10 years. If you had a bankruptcy 9 1/2 years ago, that won’t affect anything as long as you have rebuilt your credit.
    The CCCS, however, is challenging.

    Here are VA’s guidelines on CCCS (and VA is one of the most lenient on the subject):
    Participation in a consumer credit counseling program does not automatically render a borrower ineligible; however, transactions where the borrower has made monthly payments to a counseling agency or other debt pro-rating service instead of directly to the creditors within the previous year will be subject to a second level review by VA to verify that the payments have been made under a valid, bona fide counseling program and not a predatory ‘debt reduction’ service.
    To be eligible, the borrower must have completed at least one year of the payout period. In all cases, the borrower must provide documentation of satisfactory payment performance.
    In addition, the borrower must receive written permission from the counseling agency to enter into the mortgage transaction.

    In other words, if your CCCS is truly a CCCS and your accounts do not show late pays or other derogatory remarks such as “settled for less than full balance” AND you have paid on time for at least one year, you may be eligible. Everything else would need to be in line. The fact that you had a bankruptcy at some point, and then qualiied for a loan modification at some point, and then had to go into CCCS may be too much for underwriters.

    You should have a good lender really analyze your credit and explain each item to you and how it affects your chances of becoming approved.

    Feel free to message me for more specific information.

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