Q: I am delinquent on my home mortgage, but would like to sell the home and buy one elsewhere. Is this possible?
A: If you are delinquent on the mortgage you have now, there are not a lot of options to buy a different home. Lenders won’t take a risk on someone who is already late on their payments elsewhere. They see that as a really good indication that mortgage delinquency will happen again.
Creditors view your past as a guide to how you may behave in the future. Mortgage delinquency says that you don’t make enough money, are irresponsible, or otherwise got in a financial situation that’s now not manageable. Whether or not these are actually true about you is irrelevent to a lender. To them, the fact that you are now late on your mortgage sounds warning alarms that keep you from being approved for a new loan.
Regarding selling your current home, I’m guessing you’re underwater. This would make the home hard to sell. You might want to would check out the government site, MakingHomeAffordable.gov, for options to reduce your payment and keep your home.
The best plan is to get your mortgage delinquency taken care of by paying funds that are in arrears. Then try to stick it out where you are until you can sell the home conventionally. Sometimes it just takes a lot of time and patience to overcome these obstacles.
Tim Lucas (NMLS #118763), Contributor/Editor
Tim Lucas is a mortgage writer with over 11 years of experience as a loan originator, processor, and team manager. Get a live rate quote for your home purchase or refinance at MyMortgageInsider. Visit Tim on Google+, Twitter, and Facebook.