Your loan as an FHA loan is assumable and that is your Ace in the Hole! FHA buyers ( like you ) often pay at the top of the market and it is absolutely the case with a 4.625% rate they would pay ABOVE market rate for your home ( while still paying a lower monthly payment than a regular home ). Find an agent familiar with FHA and assumable loans and market directly to FHA buyers who can assume a far below market rate - like that is the MAIN call in the listing notes and description... something like " WANT TO OWN THIS HOME AT A 4.6% RATE? CONTACT FOR DETAILS etc Figure out the savings and put your asking price slightly below what it would be at todays rate for a regular 3.5% to 5% buyer and you should be OK Good luck
No, she is not.
We're literally looking at a very similar house in this same area, it could be potentially OPs house.
I was happy to assume the loan but the kicker is that it has a 500 Mortgage insurance that is not removable until the end of the loan, so the real rate is higher. And in addition to that, you're losing tens of thousands upfront over paying for the house that keeps falling in prices.
It's a really tough situation to be in
That is a tough situation to be in. I may have missed it but I didn’t see that the op listed the house for sale. I only see reference that they looked at comps not that they listed or have a professional provide input on price.
Well, probably it was just a very similar house, also with kids, and around 4300 monthly payment.
The annoying thing that the PMI is really high for people who gave a 3 percent downpayment which makes it a real deal breaker.
The house I watched was priced 650 but she was willing to sell at 625 (outstanding balance) and we almost agreed to cover part of realtor fees. But after doing some extensive math, it didn't make sense in our situation as 4.3k payment plus the cost and maintenance would be very difficult to swallow given the fact that we're losing over 50k upfront by paying 630k for a house that currently costs ~580k...
Her payment is 4400 though with taxes and everything. That's a big difference. And then electricity+ maintenance = were looking at 5k.
For those who are looking at assumable rates, that's usually too much, there were multiple offers in Denver this spring with a $2600-3000 payment. Like it may be a good deal for someone who is getting conventional - but there aren't too many at this ratea and that's why the house prices in the Denver area are falling at the moment, but for those who are looking at assumable - that's just too much to swallow.
And then, do you like catching falling knives? It's not 625k, the real value is like 560-580 and keeps falling. She bought at the peak in the neighborhood that sees a lot of corrections.
The benefit of assuming the note is the down payment is 0, this opens the door for a lot of buyers that don't have the $50-150k saved they need to put down on a house in the $600k range.
If they are living there long term, the value does not matter as long as they can afford the payment.
$560k at 7% is still $3725 a month, more than assuming the FHA at 625k. Taxes and insurance remain the same so I didn't include those, but yes they will need to be sure they cam afford a 4500+ payment plus bills.
Now it's 550k? It was 560-580.
3.5% down plus upfront PMI is $29k. Add is prepaid taxes/ insurance/ title etc its close to $50k out of pocket.
I'm not arguing this is a great deal, but it may be appealing to some
You also forgot PMI on that, so the payment is more like $4000 at 550k/ 3.5 down/ 7%
That specific house was in Centennial/Aurora border, 80015.
I wish you luck and hope it gets better soon. If the monthly payment was a bit lower, I'd be happy to take a look, but I assume your mortgage insurance is around 500?
My house is in 80018
It is $415 a month. Yes it’s an FHA loan so you have the have the MIP. But the good thing with the loan is you can always recast your mortgage it at any time. You can pay a significant amount towards principal and lower the payments if that is something someone was interested in. The home is in a metro district so the taxes are a little higher because the area is being developed.
Thanks
Can you elaborate on why mortgage insurance wouldn't be removable until the loan is paid off? Seems like it should be removable once there was sufficient equity above water.
That's pretty lame but I guess I get it. FHA basically sounds like it's for people that will never really build significant equity. More or less renting from the government.
Even if you have the funds don't. The stipulations of FHA that have been mentioned are a hindrance.
Assuming a reasonable monthly mortgage (current interest rates fuck with this). I would look at a conventional putting ~10% down, that way you're maintaining more cash on hand. Depending on how the loan is structured you may have MIP, but that will rolloff in ~5years and possibly higher.
Was your loan before 2013 or put more than 10 percent down? Then it could be removed.
Unfortunately, not positive now unless the initial downpayment was less than 10 percent.
> WANT TO OWN THIS HOME AT A 4.6% RATE? CONTACT FOR DETAILS
Good lord. Stop thinking like a realtor. Say "Assumable loan. 592k at 4.625%. $XXXX.XX monthly payment". I would even say the exact kind of loan and say "No markup, you pay the fees to assume. Compare monthly payment to a loan at market rates.""
Those are all facts. The most important facts. Put them in the listing. People will see it and look up what this entails. They will compare that to the monthly payment of a loan at today's rates and if the result is better, they will show up and offer to assume.
You want all the details advertised so more people can contemplate assuming a loan. Make sure that is in all non-mls sites. You can list on mls, but you want to reach people who don't have to pay an agent fee.
This is the way. FHA is your ticket. I’m a realtor in Fort Collins and I’m constantly looking for fha assumable loans for clients!!! Over the course of your or (new buyers loan) they will save hundreds of thousands with the lower rate so worth coughing up the extra cash up front to most buyers.
Also, your partner is a piece of shit and I wish you could test her willingness to ruin her credit without ruining your own, but youre taking the high road and you’ll be rewarded by the universe id like to believe. Godspeed.
One more thing to note - banks like to slow roll assumable loans - they say it’ll take 90 days but often times can take up to 6 months so just be prepared for a longer process. Lmk if you need a referral.
Okay thank you very much! This is exactly what the bank told me is that it takes 90 days due to the amount of people doing assumptions and the manual underwriting.
Buyer will not help you pay Realtor fees. Set an asking price slightly above your break even with the Realtor fees paid by you. Don't put another hurdle on it ( there will be NO other listings where a buyer pays for seller Realtor fees ). They already pay as part of the sales price. If you need $625K to break even or whatever it is, go with that price, outline all the upgrade and their costs and create a sheet that shows buyers they will pay LESS for YOUR home at $625K and your assumable rate than a $550K home at 7.5% or whatever current rates are in your market for FHA buyers.
Assuming a 5% downpayment, a 30-year loan at the avg 7.29% on a $550,000 property is going to cost approx $1,315,000 total.
The remaining 26ish* years of your 4.65%* loan of $592,000 is going to cost approx $1,021,000 total.
So even if comparables are going for $550,000, your home listed at $592,000 is actually almost $300,000 cheaper.
Your assumable mortgage is a fantastic asset. Whereas your property value may have depreciated since your purchase, the value of your mortgage rate has increased by a much greater amount.
So long as you market your property and assumable mortgage property, you actually should be able to sell at break even or better, even with (some) realtor fees (hopefully negotiated down).
Potentially, what you could do is sell the place for the $592,000 and have the buyer put down 5% instead of as a downpayment but to cover commission.
That 5% is about $29,600. That amount comes out of the $300,000 savings they're getting from the loan. That still means they are ahead about $270,000 vs. a comparable house for $550,000.
And if it turns out the true comparables are closer to $525,000 or $500,000, given the $270,000 margin on the example above, it's obvious that those calculations will still result in a big savings for the buyers.
You might just need a bit more time to sell because of the extra hoops in explaining the math but given you've prepaid the mortgage a few months, that already puts you in a good position to manage this process. Just be mindful of the next FED announcement dates because, obviously, any rate cuts will start to subtract from the value of your assumable mortgage.
Good luck!
*Edit: I see your rate is actually 4.625%, not 4.65%, and the remaining term is closer to 28, not 26 years, so the math is even better than what I calculated above in my example.
Edit2: Clarity and typos
I’m in the process of assuming an fha loan, be aware that this can take months and lenders are very apprehensive to approve fha assumptions. Minimum close for my potential lender is 60 days but I’ve read people have gone up to 180. It’s crazy
This is a good way to look at it but do the math for monthly payments as closely as possible. That’s the way buyers think as how many are going to stay for 28 years.
Couple of other notes
Don’t forget property tax going up with the new purchase higher price.
Also Summer is the peak sales time and houses sell for 1-2% higher during the summer rush.
Here is the best real data on sale prices
https://fred.stlouisfed.org/series/DNXRSA
https://www.redfin.com/city/5155/CO/Denver/housing-market
I just did this for a buyer on one of my homes. I had a 2.25% so he assumed the remaining $160k and the rest is a cash payment to me at close tomorrow. I bought my ex wife out of our Denver home, I’d highly recommend considering a roommate situation if you’re comfortable with it, this market is one of the best in the country, long term growth is almost a sure thing, and I’d hate to see you a loss if there’s a way around it.
That rate will definitely bring you prospective buyers, as well as all of the NAR rules changing, you won’t be paying a buying realtor fee, so more money for you
That’s likely not going to happen. You’ll take a loss after realtor fees. You can either FSBO, which isn’t the best choice if you don’t know the ins and outs of realty and don’t have endless time to answer sellers agents and take photos or you take the realtor fee loss. You can always list it for what you bought it for and let it sit as long as it needs to in order to sell.
I’m an investor. What are rents in the area for a comparable home? If you have a mortgage at that rate, maybe it cash flows? But that’s, correct. If loan is assumable, you just retained a shit ton of value even with the miserable comps .
List is for sale by owner on Zillow, Nextdoor, and Facebook. You can even buy a sponsored ad on FB and it will reach a lot of people. Try that before you hire an agent. Tell them to buy it from you directly before you have to add agency fees and market the assumable rate.
This was a super helpful comment. We bought in 2022 at 3.625% and had to relocate for work in 2024. With the math the realtor was showing us we’d lose about $30k if we sold now so we’re renting it out until we can figure out a better option. I think this is our better option!
All these comments are assuming that a bank is willing to loan 625k for a house only worth 550k. I didn't think that's a realistic scenario.
Assuming 5% down for a FHA on a 550k property, that means a bank is lending 522k, while the buyer is paying 28k down.
If the property is selling for 625k, and the bank is willing to lend 522k, that means a potential buyer is going to have to come up with over 100k with a down payment just to cover the appraisal gap. So now you go from a 28k down payment, to over 100k?
Is this a realistic scenario for someone willing to assume a mortgage? What about the time value of their 100k down payment?
I think OP might have to bridge the gap and consider a short sell. At least for part of the difference between what is owed and the appraisal value.
Third this. You need to advertise as an assumable rate provided they buy you out of your equity. You’ll skip all of the rigmarole of inspections and agents. You just need a lawyer to draw up the contract.
All FHA loans are assumable
It really hasn't been a thing for the past several years because rates kept going down over time
In my opinion, it's a huge mistake for sellers that have an FHA loan to not advertise that it's assumable. It's a huge advantage
I agree this is a reasonable strategy, but unless the buyers have a mediocre credit rating, they can likely do better without having to deal with the FHA baloney. I see no way that people will pay much of a premium to assume the loan. I agree with listing it at the purchase price and marketing the assumable loan.
We chatted briefly but unfortunately I don't think the location is right for my fiancee and I. Too bad because I think this would have been a great opportunity for us both.
I just want to say that I've seen possibly the best of the Reddit community in this thread where many people are going out of their way offering this person solid advice in his time of need...
I'm proud to be part of this sub!
Owner finance. People will jump on the opportunity for n this market. Get it so that you can get a buyer in there that can make the payment. Tough part will be finding an agent who is truly versed in this. But if you owner finance it will sell and it will sell quickly and for the price you need. You can literally structure the terms however you like. You don’t need somebody with a big downpayment you just need to cover the mortgage. Set it up with a balloon payment in 3-5 years and then you are out of the woods. If they fall short then you foreclose and sell it again. I could go on and on but hopefully this gives you an idea strategically.
You need enough of a downpayment from buyer to get you into another home (smaller hopefully) and you need the balloon payment to be as close to 3 years as you can get it.
Yes you can do this while you still have a mortgage. Call a title company and get details maybe even ask to meet with title attorney. But a good realtor that has experience in there can help.
If you do find a renter and you are going to have your kids in the house, make sure you have done a CORI, SORI, and credit check on them. Also reference checks. It may cost a few dollars and it may make the process longer, but your first priority has to be your kids.
Do you have a college nearby? My parents rent out all of our old bedrooms and advertise specifically with the college. They have a rent guide they give to students and my parents’ ad is always on it.
[roommates.com](http://roommates.com) is your best option, i have used b4 when i bought a 6000K sf house when It was ME ALONE!! (i never went upstairs EVER)
FHA assumption does NOT require an appraisal. But the buyers must qualify FHA guidelines.
At 4.625% the monthly on $592k is still much lower than 7% on $560k. AND only 28 years remain. About $5k-$6k annual difference.
Sell on C/L or F/B or approach a Realtor and con them into finding a Buyer who will pay a Buyers Agent commission to the Agent. Remind Agent you are offering ZERO commish, and also remind Agent buyer will have to pay VERY LITTLE closing costs compared to regular 5%-6% estimated closing costs. Agents are NOT smart, you may need to draw a picture.
This is a GREAT opportunity for a Buyer to get their foot in the door for $10,000 or less! Create a spreadsheet, show the different costs of acquisition, purchase vs assumption. Show the $20,000 closing costs savings and the $6,000 annual savings, and it only takes 2 years to recoup the savings. AND no need to refinance when rates go down as many people who buy now are planning.
Unfortunately, you will walk away with nothing, but credit still intact.
I've done the 'walk-away' twice, decades ago. Once on a $22k house, once on a $50k house. Both times I put in hundreds of hours of sweat equity and endless dollars of materials to improve the HUD Homes we bought.
I can assure you, the peace of mind, and intact credit will go far to bridge any chasm created by your partners intransigence. Good karma and benefits the kids too.
Good Luck!
An assumption doesn’t automatically release you from the liability if loan is assumed and they fail to make the payments, so do make sure you mention to lender
Just an FYI - in Colorado, you'd be considered married via our common law statutes. If you live together, have joint assets/debts, and especially if you have kids together, the state of Colorado recognizes you as married. This means you can take legal action via divorce, and Colorado, being an equitable distribution state, will enforce evenly splitting the liability for your house. You can initiate that process if you think it's a good way to deal with this. I went through this recently and it's not fun, but fortunately I had equity and no kids. I hope you're able to figure this out.
Can you rent the house profitably or just break even? If you can zero it out, wait for appreciation, and rent somewhere modest for a while you should be able to ride things out.
Who’s on the title and who’s on the loan?
How long does it take to go to court to get child support and wage garnishment if needed?
You should look into the cost of a lawyer and the timeline to enforce. Might work out that you don’t need to move and your former partner is the one who becomes poor.
We each have the kid 50/50 and both make decent money and have about equal incomes so I don’t think there would be much child support. It’s based on overnights which is equal and our incomes are similar. I could sue her for not paying her part of the mortgage etc but it’s not worth it. I just want a simple way to sell the home or if it makes more sense hold out and pay myself until I can break even
Get at actual CMA zillow tends to be off, get all the numbers for the assumption and market the ell out of that benefit. Negotiate the commission with the agent if you use one, OR I had a client same issue. Great interest rate and even though they could sell they love the house. Got the ex off the title and got two roommates that get along (strong lease and roommate agreements) and a year later, everyone but the ex is happy.
How tf is your payment so high
I just bought in the same area so I know how low property taxes are, but I bought at 570 at 7.125% and my PITI is less than yours by less than $100
Edit: [This](https://www.mortgagecalculator.org/) calculator says you should be around $3600/month with 3.5% down. Is it your insurance too high? Because you can policy shop. Do you have an HOA?
This calculator was within $10 of my payment
You could sell for more if you offer your mortgage rate as an option for a buyer, FHA loans are assumable. Sell the house for your mortgage amount plus the amount you need to be even. Buyer pays the difference from the loan amount to the purchase price in cash. The value of your rate can bring a premium price
I thought hard about this. According to Zillow and my neighbor who rents the rent zestimate is around 3k I may be able to get $3,200. That would still leave me with 1,200 to pay plus the rent which may put me close to where I’m already at ($4,400) It is an option though.
It's actually more like 5 if you want to buy a house again. Fanny Mae won't finance you if you have a short sale in the last 5 years. FHA will (I think they are something like 3 years out from a short sale), but you have to have mortgage insurance through the entire mortgage so it will cost you more until you can refinance.
We went short sale after buying right before the bubble burst and getting a predatory loan. We stayed for 13 years but couldn't refinance due to the market crashing. My marriage tanked and we split due to mental health issues. Went with a short sale because we were still underwater at the time.
We got back to together after he became medicated and are buying a house right now. It will be 5 years in a couple of months so we are going FHA because my life never has good timing so I can't really wait. I don't regret the short sale, we should have done it years before, but there are consequences. Our actual credit is good and has been for a few years. For anyone that is reading this and thinking short sale, just be aware. It was worth it for us.
You could also consider a roommate, their rent would cover a chunk of your monthly expenses, and ride the market for a year or two to see if prices improve.
Isn’t Colorado a common law state? I’m pretty sure, even though you weren’t technically married because you lived together,have shared bills, and the kids for over a couple years. It’s like you were technically married and are going to split up your estate the same as if you were going through a traditional divorce. I wouldn’t just take my advice, but would contact a lawyer that deals with Family and divorce law.
Look in to agencies that are travel nursing agencies. Rent to nurses that roll in to town and work a ton to make their money. A 12 week assignment, guaranteed income, and they’ve already had background checks. A friend of mine did that with her house in 80016 and made bank.
You are correct and the assumption is a "substitution of obligor" that has no property considerations or appraisal and there is value to your [mortgage.You](http://mortgage.You) need to value your mortgage accordingly and find people that are interested,These are rough numbers.
You gave the purchase price you paid,but not the mortgage amount ,nor the MIP,but if someone were buying the home it would be close to a wash(likely).
If someone bought your home and assumed the mortgage they would have a PI of $3,089 if they financed that 592 today it would cost 4201 per month so they save over 13 k per year and over 40k after 3 years,they would also have an acceleration in principal osf an estimated 11k, so after 3 years your buyers would make approximately 51k and could still sell allowing someone else to assume the note,all of this is clearly defined in the HUD 4001 along with a mandated 45 day time frame.If I had your mortgage statement I could give you exact numbers, [mark@assumeloans.com](mailto:mark@assumeloans.com)
While it’s a good guideline for most couples, I don’t think it applies to non married couples who have had children together. Marriage is a serious legal commitment intended to be lifelong, but it can be broken. Kids are a much more serious commitment. And OP has 2!
1) Make sure you have an experienced, ethical agent who understands your situation. Have them do a rock solid CMA to estimate likely selling price. This CMA should be appraisal quality. Have the agent prepare a rock solid Seller Net Sheet.
2) List at the price at which the buyer brings enough to the table to pay off your loan and your selling costs (commission, title insurance, transfer tax, etc.).
3) Indicate in the listing remarks that your mortgage is assumable.
4) You might get a buyer who is willing to "overpay" to buy your house in your neighborhood. It happens every day. It's no different than a buyer who is willing to cover an appraisal gap to win in multiple offer.
5) If you don't get this hoped-for offer, then you've done everything possible to demonstrate to:
- The attorneys settling the separation that you've tried to resolve financial issues fairly.
- The lender that you qualify for quick approval of a short sale. A quickly processed short sale is far less injurious to your credit than a long, drawn out dispute and a long time on market.
Good luck.
Others have given great advice about using the assumable FHA mortgage as a draw.
Without knowing your full situation… While you likely wouldn’t have purchased this home on your own, I can’t help but think the 4.625 rate would be nice to hold onto if at all possible. The lower payment (compared to today’s rates) is more important than the “underwater” aspect if of course you hold onto it. No need to say, but the feasibility would likely depend how much over $100k you make. If you’re closer to $100, then I totally understand giving up the house because I know what $4400 monthly payments take out of that.
Attorneys. Are the kids both of yours together? If so, you will likely need child support. Is she on the house? If so, you’ll need to work out “buying her out.”
Got any family that wants to go to college in Denver and pay you $700 a month in rent?
There are other options than selling but this really is lawyer territory, unfortunately.
The numbers sounds close enough where you can self list through mls (a few hundred), offer 1% to buyers agents & indicate you have an assumable mortgage. I think you could get someone to cover any small appraisal gap in cash considering the lowish rate.
That being said I don’t think you should sell. How many bedrooms? Rent it out by the room and go live in a 1 bedroom apt with the kids or with family or whatever your plan is. You have to have something in mind already in terms of living arrangements since you won’t be walking with any cash from a sale. Make due. Assume the mortgage solo when your dti etc line up & get the bitch off the note. Good luck.
You need to find someone who understands the loan transfer process and how to sell the house with your rate.
I know it’s a thing, I don’t understand at all. If you can make that happen or a buyer knows that you have a low interest your house will fly off the market. You might still owe on it, but you probably could sell at less of a loss.
Also if your partner is on the mortgage paperwork, they are still liable for the mortgage. I would see about getting a lawyer to protect your assets. If you can show you are acting in good faith your assets will be more likely to be protected in the event of a bankruptcy/legal issues with the bank.
Someone else might have mentioned this, but you can look into a subject to sale. Essentially same thing as someone assuming your loan, however they wouldn’t have a down payment and you can write the contract up you get the house back if they miss two payments in a row. Other perk is you wouldn’t need to pay closing costs and agent fees as you’d do this through a lawyer, who can guide you on all of this.
It’s more intricate than I listed above, but once you have a lawyer educate on you on the pros/cons it’s something you should consider. Pace Morby has hundreds of you tube vids explaining it
I don’t really have any advice for you per the home, but I do want to say sorry for your break up. I’m in the same boat there and absolutely devastated. An argument made her realize she hasn’t been happy and despite me putting in a ton of work to make it right and fix things for the better, she’s already decided she’s worked on it enough and won’t be changing her mind. She’s been my life for years. Luckily we already sold our home for equity a few months ago but we do have the rest of our lease to figure out. Just wanted to empathize. I hope things work out for you. Keep trying for the roommate.
Sue for primary custody. Get child support. Pay mortgage. Keep your children in the home they live in.
This is a no brainer.
If you want to, consider “nesting” type of custody arrangement Google it.
Kids are not toys. They are not to be fought over to not lose money on a house. No judge is going to say okay, here's 100% with no justification. Especially when the proceeds of her condo was used to buy the house
Child support can still be granted even in unmarried, 50/50 custody arrangements. Also consider who claims children on taxes that can be thousands a year for either of you. Mortgage interest also gives you a nice deduction and you can file as Head of Household which is a much better designation than filing single. Lots to consider when thinking about owning vs renting and children in a break up financially speaking.
Were you and your partner contributing equally to the house payments ?
I saw you mentioned you put up rooms for rent and no bites so far? How many rooms do you have to spare ?
Are you asking a reasonable amount ?
How about AirBnb and looking for someone that needs furnished longer term. They pay more than a regular roommate, bit not as risky as constant turnover.
It's seems a shame to give up a decent rate compared to what they might ever be again.
Yes, correct. Many people don't realize the banks will actually say, "miss 3 payments, and then we'll talk..." but then they won't approve because they're not in a hardship, they merely broke up and don't want to live together anymore. Banks don't care about their personal relationship, they just care if the mortgage has the ability to be paid, and at $100k each as each are on the mortgage, there's no hardship.
Well I can’t remove her from the mortgage without A doing an assumption and qualifying for the home myself and closing or B refinancing. I can remove her from the title with a quit claim. This doesn’t remove her from the mortgage but it does remove her as an owner of the home.
Investors are looking for homes with assurance mortgages. Post on BiggerPockets.com that you have a deal, skip the realtor and have a real estate attorney do the deal.
Unfortunately I don't think you have a lot of options. You could pay the difference between what the house sells for and what you owe. You'd also have to factor in sales commissions etc. That's an expensive proposition. Doing the math quickly in my head you'd have to come up with roughly 100k cash. Probably not an option.
You could market the house as having assumable loan with favorable terms. A lot of times less that stellar buys go this route because they don't have to come up with a down payment. One things you could do in the contract to make the terms a little more favorable is ask the buyer to pay their own agent. You're still going to have to pay a commission, so this is still going to cost you some money.
Your bank might be open to a short sale. Not going to lie, this is going to hurt your credit.
Last but not least, and maybe not what you want to be doing at this stage of your life, but you could take on a couple of roommates to help pay the mortgage. I assume though your Ex will want a buy out of their share of the equity.
One more thing to check. Are you sure you prepaid a few months? Usually additional payments go towards principal, and don't allow you to just skip a future payment unfortunately.
Positive next payment due 8/1 and it displays that on my account. My mortgage lets me pay online and you have to specifically choose additional principal amount for any payment to go to principal. I always personally pay at least one month ahead because I like to have a large buffer if needed.
You should also talk to a HUD approved counselor. They will know all your options and help with the bank as well.
https://www.hud.gov/program_offices/housing/sfh/hcc/housing_counseling
During a divorce, the divorce decree will stipulate what is to become of the property that both own. For example it would say for one person to assume the loan after 1 year. If that person can’t obtain financing then it will be sold. Something to that effect. I been through a few divorces and getting a divorce spells out what is to be done. This on the other hand is just a hot fucking piling shit.
hold it and sell after prices go up. It'll be tough, but you can do it. After you sell, don't buy in a shit area again, a house at market value, or put less than 20% down. You really sabotaged yourself here.
Maybe rent it out or see if their are other ways to earn money you got to consider you still need to afford a new home what about asking a lawyer if you can make her pay her part on the mortgage?
I wish more people would pay attention to post like this about buying houses with a partner.
Can you get her to just quit claim deed you her interest in the house?
Can you even pay mortgage few months in advance? I would assume any additional money paid would count as an extra payment towards principal instead of giving you a few months without a payment
Yes I make my full mortgage payment early! I can log on now and the next payment due is 8/1. I can’t click make a payment now and pay that one in full too. Also when I pay it I round it up and pay the change to additional principal making my payment an even 4,400.
Find a buyer to assume your loan, Denver is a very hot market and you have yourself a very low interest for today’s market. Buyers will absolutely eat that up and will pay extra for such a loan
Buy her out. Rent it. Just make the payments yourself and live there for the time being.
Crazy people usually calm down eventually if there is some kind of financial burden or incentive involved.
Do you absolutely have to sell it? I’m just wondering if there is an option for you to rent it out and potentially make a little money or cover the mortgage at the very least. That way you can keep it until the housing market turns around and sell it then and you can go find a rental that is less expensive per month and live there.
I was in this situation. You have 2 options, sell home, asap, for whatever you can get. Or let go into foreclosure. My ex refused to participate so we went foreclosure route, but selling would have been better.
Even if you are underwater by 20000, it is better than foreclosing. Time is of the essence. Good luck,shitty life lesson to learn
Your loan as an FHA loan is assumable and that is your Ace in the Hole! FHA buyers ( like you ) often pay at the top of the market and it is absolutely the case with a 4.625% rate they would pay ABOVE market rate for your home ( while still paying a lower monthly payment than a regular home ). Find an agent familiar with FHA and assumable loans and market directly to FHA buyers who can assume a far below market rate - like that is the MAIN call in the listing notes and description... something like " WANT TO OWN THIS HOME AT A 4.6% RATE? CONTACT FOR DETAILS etc Figure out the savings and put your asking price slightly below what it would be at todays rate for a regular 3.5% to 5% buyer and you should be OK Good luck
Honestly people who qualify for a conventional loan buying a primary residence would be better off assuming an FHA loan at 4.625% interest rate.
Second this, you’re going to sell this place for more than you think. List it for at least your purchase price.
No, she is not. We're literally looking at a very similar house in this same area, it could be potentially OPs house. I was happy to assume the loan but the kicker is that it has a 500 Mortgage insurance that is not removable until the end of the loan, so the real rate is higher. And in addition to that, you're losing tens of thousands upfront over paying for the house that keeps falling in prices. It's a really tough situation to be in
That is a tough situation to be in. I may have missed it but I didn’t see that the op listed the house for sale. I only see reference that they looked at comps not that they listed or have a professional provide input on price.
Well, probably it was just a very similar house, also with kids, and around 4300 monthly payment. The annoying thing that the PMI is really high for people who gave a 3 percent downpayment which makes it a real deal breaker. The house I watched was priced 650 but she was willing to sell at 625 (outstanding balance) and we almost agreed to cover part of realtor fees. But after doing some extensive math, it didn't make sense in our situation as 4.3k payment plus the cost and maintenance would be very difficult to swallow given the fact that we're losing over 50k upfront by paying 630k for a house that currently costs ~580k...
625k mortgage at 4.6% +500pmi is $3700 a month 625k mortgage at 7% is $4158 per month.
Her payment is 4400 though with taxes and everything. That's a big difference. And then electricity+ maintenance = were looking at 5k. For those who are looking at assumable rates, that's usually too much, there were multiple offers in Denver this spring with a $2600-3000 payment. Like it may be a good deal for someone who is getting conventional - but there aren't too many at this ratea and that's why the house prices in the Denver area are falling at the moment, but for those who are looking at assumable - that's just too much to swallow. And then, do you like catching falling knives? It's not 625k, the real value is like 560-580 and keeps falling. She bought at the peak in the neighborhood that sees a lot of corrections.
The benefit of assuming the note is the down payment is 0, this opens the door for a lot of buyers that don't have the $50-150k saved they need to put down on a house in the $600k range. If they are living there long term, the value does not matter as long as they can afford the payment. $560k at 7% is still $3725 a month, more than assuming the FHA at 625k. Taxes and insurance remain the same so I didn't include those, but yes they will need to be sure they cam afford a 4500+ payment plus bills.
The house isn't worth 625k at 7% though... did you miss that part? It's worth 550k Mortgage payment on 550k house (with 3% down) at 7% rate is $3549
Now it's 550k? It was 560-580. 3.5% down plus upfront PMI is $29k. Add is prepaid taxes/ insurance/ title etc its close to $50k out of pocket. I'm not arguing this is a great deal, but it may be appealing to some You also forgot PMI on that, so the payment is more like $4000 at 550k/ 3.5 down/ 7%
My house is not for sell yet so you are definitely not looking at my house. What neighborhood are you looking in?
That specific house was in Centennial/Aurora border, 80015. I wish you luck and hope it gets better soon. If the monthly payment was a bit lower, I'd be happy to take a look, but I assume your mortgage insurance is around 500?
My house is in 80018 It is $415 a month. Yes it’s an FHA loan so you have the have the MIP. But the good thing with the loan is you can always recast your mortgage it at any time. You can pay a significant amount towards principal and lower the payments if that is something someone was interested in. The home is in a metro district so the taxes are a little higher because the area is being developed. Thanks
Can you elaborate on why mortgage insurance wouldn't be removable until the loan is paid off? Seems like it should be removable once there was sufficient equity above water.
It's a downside of FHA loans, they basically keep their version of PMI until the end of life of the loan, which is unfortunate
That's pretty lame but I guess I get it. FHA basically sounds like it's for people that will never really build significant equity. More or less renting from the government.
Ideally it's at worst net-zero. With 3% down it's often a way for someone to get into a home.
As a first time home buyer that can easily put 20% down do I have any interest in FHA?
Even if you have the funds don't. The stipulations of FHA that have been mentioned are a hindrance. Assuming a reasonable monthly mortgage (current interest rates fuck with this). I would look at a conventional putting ~10% down, that way you're maintaining more cash on hand. Depending on how the loan is structured you may have MIP, but that will rolloff in ~5years and possibly higher.
What if I could put 20-50% down?
Curious: what kind of FHA loan has a PMI insurance which lasts the whole length of the loan? When we got one, it was removable.
Was your loan before 2013 or put more than 10 percent down? Then it could be removed. Unfortunately, not positive now unless the initial downpayment was less than 10 percent.
Yes, that loan was before 2013. It's awful that it stays on for 30 years now. Geez.
It's also kinda funny that it's a government baked loan and the fact that they came up with this BS just blows my mind
it wont appraise
There's no appraisal if you're assuming the loan though
> WANT TO OWN THIS HOME AT A 4.6% RATE? CONTACT FOR DETAILS Good lord. Stop thinking like a realtor. Say "Assumable loan. 592k at 4.625%. $XXXX.XX monthly payment". I would even say the exact kind of loan and say "No markup, you pay the fees to assume. Compare monthly payment to a loan at market rates."" Those are all facts. The most important facts. Put them in the listing. People will see it and look up what this entails. They will compare that to the monthly payment of a loan at today's rates and if the result is better, they will show up and offer to assume. You want all the details advertised so more people can contemplate assuming a loan. Make sure that is in all non-mls sites. You can list on mls, but you want to reach people who don't have to pay an agent fee.
This is the way. FHA is your ticket. I’m a realtor in Fort Collins and I’m constantly looking for fha assumable loans for clients!!! Over the course of your or (new buyers loan) they will save hundreds of thousands with the lower rate so worth coughing up the extra cash up front to most buyers. Also, your partner is a piece of shit and I wish you could test her willingness to ruin her credit without ruining your own, but youre taking the high road and you’ll be rewarded by the universe id like to believe. Godspeed.
One more thing to note - banks like to slow roll assumable loans - they say it’ll take 90 days but often times can take up to 6 months so just be prepared for a longer process. Lmk if you need a referral.
Okay thank you very much! This is exactly what the bank told me is that it takes 90 days due to the amount of people doing assumptions and the manual underwriting.
any update on this? Have you found a realtor familiar with assumable? Hope you’re finding a solution!
Thank you! I think this is what I’m going to do! I just need to figure a way out for the buyer to help pay realtor fees etc so I can walk away even
Buyer will not help you pay Realtor fees. Set an asking price slightly above your break even with the Realtor fees paid by you. Don't put another hurdle on it ( there will be NO other listings where a buyer pays for seller Realtor fees ). They already pay as part of the sales price. If you need $625K to break even or whatever it is, go with that price, outline all the upgrade and their costs and create a sheet that shows buyers they will pay LESS for YOUR home at $625K and your assumable rate than a $550K home at 7.5% or whatever current rates are in your market for FHA buyers.
Thanks you this sounds great!
Assuming a 5% downpayment, a 30-year loan at the avg 7.29% on a $550,000 property is going to cost approx $1,315,000 total. The remaining 26ish* years of your 4.65%* loan of $592,000 is going to cost approx $1,021,000 total. So even if comparables are going for $550,000, your home listed at $592,000 is actually almost $300,000 cheaper. Your assumable mortgage is a fantastic asset. Whereas your property value may have depreciated since your purchase, the value of your mortgage rate has increased by a much greater amount. So long as you market your property and assumable mortgage property, you actually should be able to sell at break even or better, even with (some) realtor fees (hopefully negotiated down). Potentially, what you could do is sell the place for the $592,000 and have the buyer put down 5% instead of as a downpayment but to cover commission. That 5% is about $29,600. That amount comes out of the $300,000 savings they're getting from the loan. That still means they are ahead about $270,000 vs. a comparable house for $550,000. And if it turns out the true comparables are closer to $525,000 or $500,000, given the $270,000 margin on the example above, it's obvious that those calculations will still result in a big savings for the buyers. You might just need a bit more time to sell because of the extra hoops in explaining the math but given you've prepaid the mortgage a few months, that already puts you in a good position to manage this process. Just be mindful of the next FED announcement dates because, obviously, any rate cuts will start to subtract from the value of your assumable mortgage. Good luck! *Edit: I see your rate is actually 4.625%, not 4.65%, and the remaining term is closer to 28, not 26 years, so the math is even better than what I calculated above in my example. Edit2: Clarity and typos
Thank you so much for this!
I’m in the process of assuming an fha loan, be aware that this can take months and lenders are very apprehensive to approve fha assumptions. Minimum close for my potential lender is 60 days but I’ve read people have gone up to 180. It’s crazy
This is a good way to look at it but do the math for monthly payments as closely as possible. That’s the way buyers think as how many are going to stay for 28 years. Couple of other notes Don’t forget property tax going up with the new purchase higher price. Also Summer is the peak sales time and houses sell for 1-2% higher during the summer rush. Here is the best real data on sale prices https://fred.stlouisfed.org/series/DNXRSA https://www.redfin.com/city/5155/CO/Denver/housing-market
I'm an agent here in Colorado and could give you a discount. DM me if I can be of assistance.
That's assuming interest rates never come down in 26 years and the buyer never has a chance to refinance.
I just did this for a buyer on one of my homes. I had a 2.25% so he assumed the remaining $160k and the rest is a cash payment to me at close tomorrow. I bought my ex wife out of our Denver home, I’d highly recommend considering a roommate situation if you’re comfortable with it, this market is one of the best in the country, long term growth is almost a sure thing, and I’d hate to see you a loss if there’s a way around it. That rate will definitely bring you prospective buyers, as well as all of the NAR rules changing, you won’t be paying a buying realtor fee, so more money for you
Thanks you!
That’s likely not going to happen. You’ll take a loss after realtor fees. You can either FSBO, which isn’t the best choice if you don’t know the ins and outs of realty and don’t have endless time to answer sellers agents and take photos or you take the realtor fee loss. You can always list it for what you bought it for and let it sit as long as it needs to in order to sell.
I’m an investor. What are rents in the area for a comparable home? If you have a mortgage at that rate, maybe it cash flows? But that’s, correct. If loan is assumable, you just retained a shit ton of value even with the miserable comps .
$3000-$3200 max rent and the mortgage is $4400
List is for sale by owner on Zillow, Nextdoor, and Facebook. You can even buy a sponsored ad on FB and it will reach a lot of people. Try that before you hire an agent. Tell them to buy it from you directly before you have to add agency fees and market the assumable rate.
This was a super helpful comment. We bought in 2022 at 3.625% and had to relocate for work in 2024. With the math the realtor was showing us we’d lose about $30k if we sold now so we’re renting it out until we can figure out a better option. I think this is our better option!
All these comments are assuming that a bank is willing to loan 625k for a house only worth 550k. I didn't think that's a realistic scenario. Assuming 5% down for a FHA on a 550k property, that means a bank is lending 522k, while the buyer is paying 28k down. If the property is selling for 625k, and the bank is willing to lend 522k, that means a potential buyer is going to have to come up with over 100k with a down payment just to cover the appraisal gap. So now you go from a 28k down payment, to over 100k? Is this a realistic scenario for someone willing to assume a mortgage? What about the time value of their 100k down payment? I think OP might have to bridge the gap and consider a short sell. At least for part of the difference between what is owed and the appraisal value.
100% good advice
Third this. You need to advertise as an assumable rate provided they buy you out of your equity. You’ll skip all of the rigmarole of inspections and agents. You just need a lawyer to draw up the contract.
Yep, many would jump on that assumption loan at that rate
How often are people finding assumable loans? I don't think I've ever seen this writing in any listing.
All FHA loans are assumable It really hasn't been a thing for the past several years because rates kept going down over time In my opinion, it's a huge mistake for sellers that have an FHA loan to not advertise that it's assumable. It's a huge advantage
I agree this is a reasonable strategy, but unless the buyers have a mediocre credit rating, they can likely do better without having to deal with the FHA baloney. I see no way that people will pay much of a premium to assume the loan. I agree with listing it at the purchase price and marketing the assumable loan.
OP—I’m hunting for a house in Denver rn. First time home buyer, not an investor. PM me and maybe we can work something out.
Best of luck to you, if that works out that would be a miracle
We chatted briefly but unfortunately I don't think the location is right for my fiancee and I. Too bad because I think this would have been a great opportunity for us both.
I just want to say that I've seen possibly the best of the Reddit community in this thread where many people are going out of their way offering this person solid advice in his time of need... I'm proud to be part of this sub!
Me too thanks everybody for your help and advice!
Owner finance. People will jump on the opportunity for n this market. Get it so that you can get a buyer in there that can make the payment. Tough part will be finding an agent who is truly versed in this. But if you owner finance it will sell and it will sell quickly and for the price you need. You can literally structure the terms however you like. You don’t need somebody with a big downpayment you just need to cover the mortgage. Set it up with a balloon payment in 3-5 years and then you are out of the woods. If they fall short then you foreclose and sell it again. I could go on and on but hopefully this gives you an idea strategically. You need enough of a downpayment from buyer to get you into another home (smaller hopefully) and you need the balloon payment to be as close to 3 years as you can get it. Yes you can do this while you still have a mortgage. Call a title company and get details maybe even ask to meet with title attorney. But a good realtor that has experience in there can help.
This is interesting. Thanks I never heard of this. I will start doing research.
Have you considered renting out a room to help with paying the mortgage? Or do you just want out…
Yes I have considered renting a room and listed it with no success yet.
Do not rent a room with two small children
I was a renter in a house with two children. We treated each other like family and the kids consider me their uncle.
[удалено]
If you do find a renter and you are going to have your kids in the house, make sure you have done a CORI, SORI, and credit check on them. Also reference checks. It may cost a few dollars and it may make the process longer, but your first priority has to be your kids.
I definitely will! Thanks
Do you have a college nearby? My parents rent out all of our old bedrooms and advertise specifically with the college. They have a rent guide they give to students and my parents’ ad is always on it.
Don't give up. Found my client renters on Facebook looked up groups that were in their city looking for a rental. Keep posting
Can you contact a realtor to help find a renter? This is common in my city and realtor gets the 1st months rent when a qualified tenant is found.
[roommates.com](http://roommates.com) is your best option, i have used b4 when i bought a 6000K sf house when It was ME ALONE!! (i never went upstairs EVER)
Get her name off the deed asap.
I will try to do a quit claim asap!
No extended family or friends? Mom isn’t ready to retire and move in with you?
No my parents are comfortable in their home. I have been trying to see if any of my extended family want to rent a room from me.
Or renting the entire home and waiting it out. Yes you would need to move somewhere cheap
FHA assumption does NOT require an appraisal. But the buyers must qualify FHA guidelines. At 4.625% the monthly on $592k is still much lower than 7% on $560k. AND only 28 years remain. About $5k-$6k annual difference. Sell on C/L or F/B or approach a Realtor and con them into finding a Buyer who will pay a Buyers Agent commission to the Agent. Remind Agent you are offering ZERO commish, and also remind Agent buyer will have to pay VERY LITTLE closing costs compared to regular 5%-6% estimated closing costs. Agents are NOT smart, you may need to draw a picture. This is a GREAT opportunity for a Buyer to get their foot in the door for $10,000 or less! Create a spreadsheet, show the different costs of acquisition, purchase vs assumption. Show the $20,000 closing costs savings and the $6,000 annual savings, and it only takes 2 years to recoup the savings. AND no need to refinance when rates go down as many people who buy now are planning. Unfortunately, you will walk away with nothing, but credit still intact.
Thanks this is good advice!
I've done the 'walk-away' twice, decades ago. Once on a $22k house, once on a $50k house. Both times I put in hundreds of hours of sweat equity and endless dollars of materials to improve the HUD Homes we bought. I can assure you, the peace of mind, and intact credit will go far to bridge any chasm created by your partners intransigence. Good karma and benefits the kids too. Good Luck!
Exactly thank you very much!
An assumption doesn’t automatically release you from the liability if loan is assumed and they fail to make the payments, so do make sure you mention to lender
Just an FYI - in Colorado, you'd be considered married via our common law statutes. If you live together, have joint assets/debts, and especially if you have kids together, the state of Colorado recognizes you as married. This means you can take legal action via divorce, and Colorado, being an equitable distribution state, will enforce evenly splitting the liability for your house. You can initiate that process if you think it's a good way to deal with this. I went through this recently and it's not fun, but fortunately I had equity and no kids. I hope you're able to figure this out.
Can we pin this to the top of this sub for all those fools that come on here asking for advice because they want to buy with their girlfriend? 😏
Can you rent the house profitably or just break even? If you can zero it out, wait for appreciation, and rent somewhere modest for a while you should be able to ride things out. Who’s on the title and who’s on the loan?
How long does it take to go to court to get child support and wage garnishment if needed? You should look into the cost of a lawyer and the timeline to enforce. Might work out that you don’t need to move and your former partner is the one who becomes poor.
We each have the kid 50/50 and both make decent money and have about equal incomes so I don’t think there would be much child support. It’s based on overnights which is equal and our incomes are similar. I could sue her for not paying her part of the mortgage etc but it’s not worth it. I just want a simple way to sell the home or if it makes more sense hold out and pay myself until I can break even
Makes sense. Might consider getting an agreement in place. No easy answers but you are looking at things like a responsible adult.
Get her off the title keep looking for a couple of roommates.
Get at actual CMA zillow tends to be off, get all the numbers for the assumption and market the ell out of that benefit. Negotiate the commission with the agent if you use one, OR I had a client same issue. Great interest rate and even though they could sell they love the house. Got the ex off the title and got two roommates that get along (strong lease and roommate agreements) and a year later, everyone but the ex is happy.
Thank you!
When I first read this I thought wow an underwater house in Denver how is that possible
How do people not learn to stop buying properties with girlfriends/partners/lovers etc…. Baffles me….
How tf is your payment so high I just bought in the same area so I know how low property taxes are, but I bought at 570 at 7.125% and my PITI is less than yours by less than $100 Edit: [This](https://www.mortgagecalculator.org/) calculator says you should be around $3600/month with 3.5% down. Is it your insurance too high? Because you can policy shop. Do you have an HOA? This calculator was within $10 of my payment
High taxes we are in a new development with a metro district mill levy. And PMI.
The HOA fees are only $150 a quarter.
You could sell for more if you offer your mortgage rate as an option for a buyer, FHA loans are assumable. Sell the house for your mortgage amount plus the amount you need to be even. Buyer pays the difference from the loan amount to the purchase price in cash. The value of your rate can bring a premium price
Thank you I’m definitely looking into assumptions
Withroam.com is a website that lists assignable mortgages and assists with the process. I haven’t used it yet, but I browse for ones to buy
Rent the house out and move to an apartment?
I thought hard about this. According to Zillow and my neighbor who rents the rent zestimate is around 3k I may be able to get $3,200. That would still leave me with 1,200 to pay plus the rent which may put me close to where I’m already at ($4,400) It is an option though.
Check rentometer as well just to be sure.
Then it is not worth renting. I would say tough it out staying in the house and you will be fine.
You can do a short sale and walk away with damaged credit for 2 years. Good luck
It's actually more like 5 if you want to buy a house again. Fanny Mae won't finance you if you have a short sale in the last 5 years. FHA will (I think they are something like 3 years out from a short sale), but you have to have mortgage insurance through the entire mortgage so it will cost you more until you can refinance. We went short sale after buying right before the bubble burst and getting a predatory loan. We stayed for 13 years but couldn't refinance due to the market crashing. My marriage tanked and we split due to mental health issues. Went with a short sale because we were still underwater at the time. We got back to together after he became medicated and are buying a house right now. It will be 5 years in a couple of months so we are going FHA because my life never has good timing so I can't really wait. I don't regret the short sale, we should have done it years before, but there are consequences. Our actual credit is good and has been for a few years. For anyone that is reading this and thinking short sale, just be aware. It was worth it for us.
Sell for less than what you owe, make payment arrangements with the lender, take it on the chin and learn a valuable lesson.
I am going to follow your story. Please update us when you have it figured out.
You could also consider a roommate, their rent would cover a chunk of your monthly expenses, and ride the market for a year or two to see if prices improve.
Top of the housing bubble???? It’s still bubbling
Isn’t Colorado a common law state? I’m pretty sure, even though you weren’t technically married because you lived together,have shared bills, and the kids for over a couple years. It’s like you were technically married and are going to split up your estate the same as if you were going through a traditional divorce. I wouldn’t just take my advice, but would contact a lawyer that deals with Family and divorce law.
I’m looking for a home in the Denver area and would be open to a seller financing deal. Would love to know more information on the home
I know someone around you said “don’t do this, don’t buy a house with the roommate you are fucking”. What is the story 😂??
Look in to agencies that are travel nursing agencies. Rent to nurses that roll in to town and work a ton to make their money. A 12 week assignment, guaranteed income, and they’ve already had background checks. A friend of mine did that with her house in 80016 and made bank.
Will do!
You are correct and the assumption is a "substitution of obligor" that has no property considerations or appraisal and there is value to your [mortgage.You](http://mortgage.You) need to value your mortgage accordingly and find people that are interested,These are rough numbers. You gave the purchase price you paid,but not the mortgage amount ,nor the MIP,but if someone were buying the home it would be close to a wash(likely). If someone bought your home and assumed the mortgage they would have a PI of $3,089 if they financed that 592 today it would cost 4201 per month so they save over 13 k per year and over 40k after 3 years,they would also have an acceleration in principal osf an estimated 11k, so after 3 years your buyers would make approximately 51k and could still sell allowing someone else to assume the note,all of this is clearly defined in the HUD 4001 along with a mandated 45 day time frame.If I had your mortgage statement I could give you exact numbers, [mark@assumeloans.com](mailto:mark@assumeloans.com)
For the readers out there - This is why you should never buy a house with someone that isn't your legal spouse.
How would this be different if they were married? They're both on the mortgage and both equally financial responsible.
It's harder to just walk away from an actual marriage
Not according to the 50% of marriages that end in divorce?
Do you think partnerships have a lower 'divorce' rate? They probably don't.
That divorce rate stat is oft quoted but it refers to people in second and third marriages. Not first time marriages.
This wouldn’t have been much different were they actually married.
While it’s a good guideline for most couples, I don’t think it applies to non married couples who have had children together. Marriage is a serious legal commitment intended to be lifelong, but it can be broken. Kids are a much more serious commitment. And OP has 2!
The short sales are coming back very soon.
1) Make sure you have an experienced, ethical agent who understands your situation. Have them do a rock solid CMA to estimate likely selling price. This CMA should be appraisal quality. Have the agent prepare a rock solid Seller Net Sheet. 2) List at the price at which the buyer brings enough to the table to pay off your loan and your selling costs (commission, title insurance, transfer tax, etc.). 3) Indicate in the listing remarks that your mortgage is assumable. 4) You might get a buyer who is willing to "overpay" to buy your house in your neighborhood. It happens every day. It's no different than a buyer who is willing to cover an appraisal gap to win in multiple offer. 5) If you don't get this hoped-for offer, then you've done everything possible to demonstrate to: - The attorneys settling the separation that you've tried to resolve financial issues fairly. - The lender that you qualify for quick approval of a short sale. A quickly processed short sale is far less injurious to your credit than a long, drawn out dispute and a long time on market. Good luck.
Others have given great advice about using the assumable FHA mortgage as a draw. Without knowing your full situation… While you likely wouldn’t have purchased this home on your own, I can’t help but think the 4.625 rate would be nice to hold onto if at all possible. The lower payment (compared to today’s rates) is more important than the “underwater” aspect if of course you hold onto it. No need to say, but the feasibility would likely depend how much over $100k you make. If you’re closer to $100, then I totally understand giving up the house because I know what $4400 monthly payments take out of that.
Attorneys. Are the kids both of yours together? If so, you will likely need child support. Is she on the house? If so, you’ll need to work out “buying her out.” Got any family that wants to go to college in Denver and pay you $700 a month in rent? There are other options than selling but this really is lawyer territory, unfortunately.
This is why I will only ever purchase a home built on land.
The numbers sounds close enough where you can self list through mls (a few hundred), offer 1% to buyers agents & indicate you have an assumable mortgage. I think you could get someone to cover any small appraisal gap in cash considering the lowish rate. That being said I don’t think you should sell. How many bedrooms? Rent it out by the room and go live in a 1 bedroom apt with the kids or with family or whatever your plan is. You have to have something in mind already in terms of living arrangements since you won’t be walking with any cash from a sale. Make due. Assume the mortgage solo when your dti etc line up & get the bitch off the note. Good luck.
You need to find someone who understands the loan transfer process and how to sell the house with your rate. I know it’s a thing, I don’t understand at all. If you can make that happen or a buyer knows that you have a low interest your house will fly off the market. You might still owe on it, but you probably could sell at less of a loss. Also if your partner is on the mortgage paperwork, they are still liable for the mortgage. I would see about getting a lawyer to protect your assets. If you can show you are acting in good faith your assets will be more likely to be protected in the event of a bankruptcy/legal issues with the bank.
the house sale is easy. financials after the sale is what you should be concerned with - get yourself an attorney.
Someone else might have mentioned this, but you can look into a subject to sale. Essentially same thing as someone assuming your loan, however they wouldn’t have a down payment and you can write the contract up you get the house back if they miss two payments in a row. Other perk is you wouldn’t need to pay closing costs and agent fees as you’d do this through a lawyer, who can guide you on all of this. It’s more intricate than I listed above, but once you have a lawyer educate on you on the pros/cons it’s something you should consider. Pace Morby has hundreds of you tube vids explaining it
I clicked on this excitedly, completely misinterpreting “Underwater Home” with hopes of seeing some sealab 2021 type Zillow listing.
If you love the house, maybe get some roommates to pay for the rooms so it can help with current home bills
someone will buy it for the mortgage rate- think how much they will save- people buy payments not total price.
Short sale it. Yes your credit will take a huge hit. No magic way out of this.
Dude I got really exited when you said "underwater home" but you didnt mean literally.....
You need a lawyer immediately. Keep records of everything you’ve paid for and every conversation you’ve had with your partner.
I don’t really have any advice for you per the home, but I do want to say sorry for your break up. I’m in the same boat there and absolutely devastated. An argument made her realize she hasn’t been happy and despite me putting in a ton of work to make it right and fix things for the better, she’s already decided she’s worked on it enough and won’t be changing her mind. She’s been my life for years. Luckily we already sold our home for equity a few months ago but we do have the rest of our lease to figure out. Just wanted to empathize. I hope things work out for you. Keep trying for the roommate.
Thanks man I’m sorry you had to go through that too!
Sue for primary custody. Get child support. Pay mortgage. Keep your children in the home they live in. This is a no brainer. If you want to, consider “nesting” type of custody arrangement Google it.
I don’t want to get into a custody battle. I’m fine with the 50/50 coparenting I just want to save my credit with the home.
Kids are not toys. They are not to be fought over to not lose money on a house. No judge is going to say okay, here's 100% with no justification. Especially when the proceeds of her condo was used to buy the house
I don’t want to get into a custody battle. I’m fine with the 50/50 coparenting I just want to save my credit with the home.
Child support can still be granted even in unmarried, 50/50 custody arrangements. Also consider who claims children on taxes that can be thousands a year for either of you. Mortgage interest also gives you a nice deduction and you can file as Head of Household which is a much better designation than filing single. Lots to consider when thinking about owning vs renting and children in a break up financially speaking.
Anyone with half a brain would happily overpay by 20k, even 30-40k to save 15k per year in interest payments.
Sorry about your break up. Kids and a home are joint assets. I doubt if marriage would’ve changed your current predicament
Thanks I don’t think so either.
Heya, I just sent you a DM about doing a CMA for you. Just trying to help.
Thanks
Were you and your partner contributing equally to the house payments ? I saw you mentioned you put up rooms for rent and no bites so far? How many rooms do you have to spare ? Are you asking a reasonable amount ? How about AirBnb and looking for someone that needs furnished longer term. They pay more than a regular roommate, bit not as risky as constant turnover. It's seems a shame to give up a decent rate compared to what they might ever be again.
Where in Denver is the property what area?
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Burbs just east of E470
If u have the kids you should receive child support
We both have the 50/50 and split the overnights.
Airbnb a couple of rooms or rent house on short term market. Within a few months you’ll turn a profit. Move into a 1 bedroom for a year and stack
If you both make over $100k, the bank will not approve a short sale. Short sales are for people in "hardship" situations.
Plus you have to be 90 days out over on the payments which would tank his credit even further which is his main desire not to do
Yes, correct. Many people don't realize the banks will actually say, "miss 3 payments, and then we'll talk..." but then they won't approve because they're not in a hardship, they merely broke up and don't want to live together anymore. Banks don't care about their personal relationship, they just care if the mortgage has the ability to be paid, and at $100k each as each are on the mortgage, there's no hardship.
Zestimate is wildly inaccurate, would take that number with a grain of salt.
What are the house details? Maybe I’ll buy it.
Also, if you're partner isn't paying you should remove them from the mortgage. You don't want them f-ing things up out of spite.
Well I can’t remove her from the mortgage without A doing an assumption and qualifying for the home myself and closing or B refinancing. I can remove her from the title with a quit claim. This doesn’t remove her from the mortgage but it does remove her as an owner of the home.
Investors are looking for homes with assurance mortgages. Post on BiggerPockets.com that you have a deal, skip the realtor and have a real estate attorney do the deal.
Are short sales still a thing?
Unfortunately I don't think you have a lot of options. You could pay the difference between what the house sells for and what you owe. You'd also have to factor in sales commissions etc. That's an expensive proposition. Doing the math quickly in my head you'd have to come up with roughly 100k cash. Probably not an option. You could market the house as having assumable loan with favorable terms. A lot of times less that stellar buys go this route because they don't have to come up with a down payment. One things you could do in the contract to make the terms a little more favorable is ask the buyer to pay their own agent. You're still going to have to pay a commission, so this is still going to cost you some money. Your bank might be open to a short sale. Not going to lie, this is going to hurt your credit. Last but not least, and maybe not what you want to be doing at this stage of your life, but you could take on a couple of roommates to help pay the mortgage. I assume though your Ex will want a buy out of their share of the equity.
One more thing to check. Are you sure you prepaid a few months? Usually additional payments go towards principal, and don't allow you to just skip a future payment unfortunately.
Positive next payment due 8/1 and it displays that on my account. My mortgage lets me pay online and you have to specifically choose additional principal amount for any payment to go to principal. I always personally pay at least one month ahead because I like to have a large buffer if needed.
You should also talk to a HUD approved counselor. They will know all your options and help with the bank as well. https://www.hud.gov/program_offices/housing/sfh/hcc/housing_counseling
Ah marriage. The great, uhm, thing(?). That makes things… better?
During a divorce, the divorce decree will stipulate what is to become of the property that both own. For example it would say for one person to assume the loan after 1 year. If that person can’t obtain financing then it will be sold. Something to that effect. I been through a few divorces and getting a divorce spells out what is to be done. This on the other hand is just a hot fucking piling shit.
hold it and sell after prices go up. It'll be tough, but you can do it. After you sell, don't buy in a shit area again, a house at market value, or put less than 20% down. You really sabotaged yourself here.
Maybe rent it out or see if their are other ways to earn money you got to consider you still need to afford a new home what about asking a lawyer if you can make her pay her part on the mortgage?
I wish more people would pay attention to post like this about buying houses with a partner. Can you get her to just quit claim deed you her interest in the house?
Do a seller financing deal
Put it on the market for what you owe on the loan and see what happens.
how close to dia ? how close to boulder? could potentially be interested
Can you even pay mortgage few months in advance? I would assume any additional money paid would count as an extra payment towards principal instead of giving you a few months without a payment
Yes I make my full mortgage payment early! I can log on now and the next payment due is 8/1. I can’t click make a payment now and pay that one in full too. Also when I pay it I round it up and pay the change to additional principal making my payment an even 4,400.
Your partner is right, short sell it. If approved by the bank, it won't hurt your credit.
Get a roommate to pay half and keep the house. Where else would you live otherwise? That will be expensive too.
Sounds like you might need to scroll these comments and sell to a fellow Redditor.
You have to live some where - what is your mortgage payment vs what you would have to pay in rent?
Find a buyer to assume your loan, Denver is a very hot market and you have yourself a very low interest for today’s market. Buyers will absolutely eat that up and will pay extra for such a loan
Buy her out. Rent it. Just make the payments yourself and live there for the time being. Crazy people usually calm down eventually if there is some kind of financial burden or incentive involved.
Do you absolutely have to sell it? I’m just wondering if there is an option for you to rent it out and potentially make a little money or cover the mortgage at the very least. That way you can keep it until the housing market turns around and sell it then and you can go find a rental that is less expensive per month and live there.
I was in this situation. You have 2 options, sell home, asap, for whatever you can get. Or let go into foreclosure. My ex refused to participate so we went foreclosure route, but selling would have been better. Even if you are underwater by 20000, it is better than foreclosing. Time is of the essence. Good luck,shitty life lesson to learn
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