We purchased our house 3 years ago at 630k with 7.1 interest rate. unfortunately, my spouse recently lost his job so haven't been able to pay our monthly payment of 6,500 since February
We contacted our realtor to see if we could sell our house and rent ( while we save to buy a lesser home maybe 350k later) but he said it is not advisable to sell right now because the market value has recently dropped.
Honestly, we are worried because we dont know when our financial situation will improve, and again we are scared of loan modification because we think it will send us into further debt. is short selling the best option here?
I will appreciate your advise and thoughts.
FMI: we are currently owing 615k on the home,
We think we should let go of our first home
byu/Golden-mindset inpersonalfinance
Posted by Golden-mindset
2 Comments
Dang, tough spot. First thing you need to do is contact your mortgage company. A loan modification is better than a short sale, you will still owe the money and sounds like you can’t come to closing with cash.
Sorry you’re going through this. $6,500 on a $630k house is bananas, what’s the breakdown there? That’s $2.3 million over the course of the loan. Even with 0% down at 7.1%, that’d still be nearly $2,000 under what you pay. Is there an HOA? Can you shop insurers? Are you bundling home and auto and insuring five cars with a long accident history? I ask because I also paid $630k for a house in 2024 and even though my rate is a percent or so lower, our monthly payments could not be more different. My property taxes aren’t exactly low either.