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Juan Said:

Getting rid of my mortgage payment without hurting the credit that much?

We Answered:

Well, first of all I'm sorry your finances look that way. I suggest you to read the book The Total Money Makeover by Dave Ramsey.

Now, you can only sell your house on a short sale when the bank has already began the foreclosure process, otherwise you can sell it or rent it. If you rent the house, it will be considered an investment for tax purposes so you will have to report all your income against all of your expenses on that house.

If you do not like to read you should then listen to this guy online at http://www.daveramsey.com He is an expert on realestate an bad finances. He went through your situation a couple of times until he figured out that what he was doing was not working.

Lee Said:

Any ideas as of best way to deal with mortgage in a vacant house?

We Answered:

no worries. many seller's are in your same situation. contact a local realtor who is familiar with short sales. They will list your home about 80-85% market value and is sure to bring an offer. Be pro-active and contact your lender to request a short sale package. They will mail or fax this to you. Your short sale agent will negotiate with the loss mitigation negotiator and get the offer accepted. Within 3 weeks you could have your home closed. In essence, your lender will pay the commission to the listing agent and the buyer's agent. YOU will need to net ZERO dollars at closing. Of course you will have a loss, the lender will send you a 1099 for the loss that you report on your next tax return as earned income. Your credit will be saved and it will say "settled." Good Luck.

Andrea Said:

How much do you make a month and how much do you pay on mortgage a month?

We Answered:

On my first house my mortgage payment (PI TI) was about 45% of my take home pay. I live a frugal life style and it was no problem at all. However, that was years ago. Today most banks are much more conservative and require that the total loan payment is no more than 28-32% of your pay. You can inquire with a local bank of their terms for a mortgage loan and they will pre-qualify you for a specific loan amount and that with your down-payment tells you the maximum amount you can afford to pay for your new house. Good luck.