Mortgage Forum

Mike

My loan for my condo exceeds my condo value at this point which is about $20K difference. My plan was to sell around this time but doing it upside down on a loan makes no sense and my ARM will adjust in October which I was hoping to escape in the process.

I am not late on my mortgage and never have been but I can foresee that happening for sure if the ARM adjusts up and I have considerable other financial obligations which are pinching my finances so tightly. Additionally, I was hoping that by now I could get a larger place because my baby is now a 3 year old and we need more space. At this point, I would be willing to rent but if I could unload this place, it would be the best thing financially. If leasing this place were an option, I would already have done that but the rents are much lower than my mortgage.

I was told to use a company that uses an auctioneer to do the short sale but the person doing this told me the auctioneer felt the lowest possible bid would be rejected by the bank so no point in pursuing it. I don't entirely understand that but that's what the guy told me the auctioneer he uses told him.

So I'm wondering how difficult is it to do a short sale without yet being behind on the mortgage but upside down on a loan. My mortgage holder is American Servicing Company (ASC). I wish I could use an auctioneer myself to get rid of the property since that would be a lot quicker than simply listing and finding and hoping for a buyer, short-sale or not. What are your thoughts on this?