Go Back To Search Results Question How can one refinance a house with negative equity? My ex wife lives in the house we owned when we were married. Since the divorce, she had to refinance the mortgage due to financial difficulties. Right now I believe she owes more than the house is worth on the open market. She still has financial difficulties having a large amount of debt in addition to the mortgage. Does she have any options in trying to rid herself of this house to move into a smaller, more affordable one? If she sells the house at a loss, is she required to repay the difference back to the bank or mortgage holder immediately? What options might exist for her to rid herself of debt besides bankruptcy? By fabguy4fn12 Posted on 06/28/06 Total Answers 4 Answers- I own a lot of real estate and deal with banks alot. The bank that holds the loan will not sign off on the loan unless they are paid in full. Her only choice is to continue making payments or file bankruptcy, which may or may not relieve her of the liabilty. Answer by : altonbi On Date 2006-06-28 12:57:53 She should speak with the current mortgage lender regarding a "Short Sale". This type of transaction is used when the house sells for less than the mortgage owed. Yes, the difference must be paid back. A payment schedule is created by the bank. It is a better option than bankruptcy - but will still effect her credit score (or anyone else's score that is on the loan). However, most people who have a short sale are still able to buy another home (while bankruptcy could proclude one from doing that) Answer by : JT's Mom On Date 2006-06-28 13:00:09 JT's Mom is correct. A short sale is the answer. If she can prove she is poor and has no assets (the divorce helps), chances are she won't have to pay back the loan and they might just issue a 1099c, which looks like she got cash for the difference of what is owed and what was paid on her taxes. They might not do nothing as well. Regards... Answer by : satarnag On Date 2006-06-28 20:22:00 I am a loan officer with Providential Bancorp, a nationwide mortgage lender. Most banks and lendrs will not approve a loan over 100% LTV. But, all lenders are different. We specialize in working with people in similar situations to yours. (Bad credit, 110-125% LTV loans, bankruptcy's in th epast, etc.) Give me a call at 312-264-6448, my name is Jason. I'd be happy to assist you in a refinance.. You can email me at Jasonf@providential.com. I will be back to my office on Wednesday the 5th, but i will be on my email account through tthe weekend if you would like to talk now! Either way i hope you enjoy your holiday weekend! Jason Fry Answer by : frymail2005 On Date 2006-07-01 13:50:23   Go Back To Search Results