The mortgage can be moved to the new home or discharged with a penalty which applies to most of the mortgages. Breaking a mortgage can be very costly and you should look into the option of porting the mortgage to the new home. If the mortgage you required is higher then the current mortgage then you can apply for a blend mortgage.

If you sell your home and break the mortgage you will most likely going to pay a penalty which might be a percentage of the left amount of mortgage or 3 month mortgage payments. It is all depends on your mortgage condition and you can call the bank to verify what it is.

Penalties vary between different lenders but I think its 3 month of mortgage payments to break a mortgage in most cases. You should ask your bank how much is the penalty to break the mortgage sooner.

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I live in baltimore and desperately want to get out of the city. however, due to the housing crisis, i believe that i am currently underwater in my mortage. if i sell my home for less than my current mortgage, what are my options? i am not interested in a short-sale.

1st person got it right.... if you have the cash pay down difference, keep in mind you have commission, closing cost, title, etc etc.... also, banks/lenders... majority of the time, will not modify your loan... don't believe the hype. Plus, if you're not interested in a short sale... you're probably not behind on your payment. Last option.... get creative =) You become the bank (depending on the loan you have)... owner finance for someone else, who cannot get a conventional loan. Lease it out with an option to buy. They pay higher payments then rent because they "have the option to buy and your the bank" also... you can set the contract to have them do all the maintenance, insurance, and taxes. Oh, make sure to collect a down payment just like they are buying =)

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What are my options relative to my second mortgage payoff? can the portion of the 2nd mortgage be rolled into another loan so that the remaining difference still be paid off? how does a short sale impact your ability to buy a home at a later time?

This is a tough time to be in your situation, but not all is lost, the mortgage companies are aware that short sales need to happen right now. If you go the Real Estate Agent route, be sure you find an agent that have successfully done short sales, this is new territory for a lot of Real Estate Agents, and they just don't Really know how to deal with short sale. There are companies that all they do is assist in short sales. The one other thing to keep in mind is that getting out of your situation will be time consuming. If you can hold out and make your payments then this is your best option, the market will come back around. However, this may not be possible. So, in this case just remember, that going through with a short sale is a FAR better option then allowing a foreclosure to happen. If you proceed with a short sale and succeed, in the future you will, with some explaining, be able to buy a house again sooner then later. Do not let anyone convince you that allowing a foreclosure is not damaging, it will take you far longer, 6 to 8 years, credit wise, to recover from a foreclosure then having to explain a short sale in the future. There are also Real Estate Investors that will often help with situations such as yours, some that will actually work short sales. We have Real Estate Investor colleagues all over the US, check out our web site www.ibuypugetsound.com, click on "Ask an Expert" submit a question if you would like and we may have a colleague that works in your area. Also look at www.5000families.org, this is a nation wide non-profit company that help people figure out what do if they are facing your situation, with volunteers all over the US.

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Relocate to another state. between the two properties (one single family in which we live-the others are three single family rentals) we owe approx. $261,000.00. we would like to make an offer on the other house to relocate, what would our best option be, we have about 60,000 to use as a down payment-should we consider a bridge mortgage with our home equity or are there other alternatives? should we just wait until these properties are sold? thank you for your help.

What's the real estate market like in the area in which the properties are located. Let me confirm I'm understanding you: You have four properties, one of which is the home in which you're living with a total debt of $261,000. Obviously, I'm not aware of your RE market; I also don't know if the $600,000 you've shared is based on a quick sale; and I don't know your risk tolerance or various exit strategies. Question: Do you need to move out of state? Question: How long can you pay the holding costs on four homes if a worst-case scenario develops...all are left empty? (I realize you probably have 3 leases). Question: Instead of a bridge-loan, have you considered a lease-to-own, which keeps you more liquid (little down payment) and doesn't lock you in to a purchase. However, you lock in a purchase price with an "option" to purchase. I buy lots of homes, and rarely purchase the traditional way. I have the money and the credit to get mortgages. But why would I, when I can buy properties with a lease-option, i.e. little out of pocket, no credit at risk, and no commitment to purchase. If you MUST re-locate out of state, I would strongly advise you to consider a lease-to-own for reasons stated. If you're not forced to move, I would get the properties sold first or at least have a solid "plan B" for each. Unfortunately, we hear daily from people with multiple properties who are upside down and bleeding bad each month. They desperately want us to take their properties off their hands. It's very sad. Think carefully.

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i am looking to move to another state and what i can rent the condo for is a lot less then the mortgage payment and i will have trouble paying the difference.

A lot of folks are upside down in their loans because their property has devalued. Your options are not good and you will be responsible for the difference of what your house sells for and what you owe. Renting it out can cause you a lot of problems if you are not near by and you might want to talk to a management company and see if that would work for you financially. Might want to pick up a second job and pay down extra on your mortgage if that is allowed . I'm sure glad now that I bought conservatively instead of the larger house I wanted plus it needed a ton of work. I would have been right where you are but at least I'm not going anywhere. Lots of luck.

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Is there such a thing as a loan or program out there if i sell my house less than what i owe on it (i am 40k upside down in my house), can i take that balance and apply it to a new house?? my husband got a job offer in another state and we don't know what to do with our house??

You will have to make arrangements with your current bank to do what is called a short sale. That is to say that you are going to sell the home for less than you owe on it. Obviously you can do this only with the banks approval. If (and only if!) you have not gone late yet on your current property you may be able to buy a new property even if you just did a short sale. This can be done via a FHA loan only. Conventional financing will be very hard to get after a short sale on your credit record. If you need more information on this feel free to email me: axisdavid@gmail.com

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After a lifetime (30 years, anyway) of stellar credit, i was forced to file chapter 7 about one and a half years ago. my manufacturing business failed primarily due to cheaper offshore product being imported into the usa. the total debt liquidated was probably in the $60k range, the majority of it business related. i did reaffirm my first and second mortgages on my home, along with a line of credit at a local bank, and two vehicle loans, with all payments being made on time every month. my situation now is that i have sold my home and am scheduled to close in two weeks. this will clear all debts and leave me with around $60 in the bank. i am currently shopping for another house and am curious about what mortgages are available, and what type of interest rates should i expect, and if i can even qualify for a loan. my income is $70k per year.

i dont' think you can do anything for seven years. honestly, i wouldn't loan you any money.

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We bought a house last august and have been trying to sell it since december. no-one seems interested (the house is a little unusual). we cant afford the mortgage (which is one of the reasons we are selling, plus we are expecting a baby in october) and are close to defaulting on payments. we cant drop the price on the house as otherwise we will owe the bank (who are already going to charge us $7,000 as a penalty for repaying early), plus the estate agents fees, settlement fees etc mean we are already selling it at our lowest price. i am getting very depressed at being stuck in a house i really now hate, with what seems like no way out. we really need to find a solution in the next few months. has anyone any idea whether you can just hand a house back to the lender and walk away? we will already be losing $50,000 in what we have put into the house, but it will be worth it to get my sanity back. any ideas?

Take ina boarder or two to help stretch your cash until you can get in contact with a person or organisation who can provide sound financial advice.

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You can tell him to buy your half of the house from you. Unfortunately since you have a joint mortgage it is your responsibility also and you just can't be removed unless you both agree to it. Boyfriend and girlfriends should never get a house together. I have seen it end badly way to many times.

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I am planning to sell my extra house, for which i am paying a mortgage (15 more years to go). the mortgage rate is really low. can i sell the house without paying off the mortgage (i.e. can i take the mortgage as a low-interest loan), e.g. for a few years (my investment return should be much higher than the mortgage interest rate)? is this an option that i can negotiate with my lender?

No because to clear a mortgage you not only pay the outstanding sum left to pay but a proportion of the interest that the bank would have charged over the 15 years.Also you will never get a cash loan at a lower rate than a mortgage rate.And if you reckon your investment return will be higher than your mortgage charge then you are sadly misguided or misinformed.You would be far better renting the house paying the mortgage of as fast as possible and then selling .I reckon you could pay the mortgage of 8 years early without incurring penalty charges( but this does depend on your lender)then sell the house on the open market .

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I think you answered your own question...sell your house.