Q: We are considering selling our home. Right now we owe more than the value of our house (we owe approx. $20,000 more than what we could sell it for). I have heard that it is possible to transfer whatever is left on your mortgage over to the new house/mortgage. Is this true? Let’s say we bought a house for $100,000 could we add in that extra $20,000 that we would still owe on our previous mortgage? Thanks!
A: I have yet to hear (although I would love to ) about this type of liability transfer (which would be similar to a car loan). I do know that there is ‘talk’ going on regarding loan modifications & this issue. Check with your current lender to see what they might be able to do for you (loan modification wise).