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I'm currently considering moving to another state to seek employment that might be better than my current situation, hopefully better pay, a better company to work for, and more long term options. The problem is, I'm significantly upside-down in my mortgage. I would like to be able to pay off my mortgage, but I'm kind of stuck, not really knowing what options there is to dealing with my current home. Also, how would each of these options affect my ability to get a new mortgage in the near term future?

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I just read this article and found it useful

http://www.moneyunder30.com/mortgage-underwater-options

Options outlined in the article (read the article or about the different solutions to learn more):

  • Continue paying and wait until the home value comes back up (if you have the money and are commited to this home)

  • Refinance (if you qualify)

  • Rent it out (if it makes sense financially and you know the pros and cons of being a landlord)

  • Loan modification (but watch out for terms, it might end up increasing the monthly payment)

  • Foreclosure or walking away (big credit hit)

  • Deed in lieu (give home ownership to bank, credit hit)

  • Short sale (if you find a buyer and the lender agrees to it, credit hit)

  • I suggest that you provide a summary of the article in your answer, so that the answer can stand on its own. That way, should the link ever go stale, the answer is still useful. – George Marian May 20 '11 at 6:03
  • good idea, edited the response – Pierre May 20 '11 at 16:53
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The first option that the Money Under 30 post that Pierre linked to is "wait it out." I still think that's your best option, along with staying at your current job and enjoying your current house.

You're running into one of the drawbacks of owning a house. It's not very liquid anyway, and it's fallen in value since you've bought it. You can't get out of owning the house right now without huge cost. This means you're facing possible missed opportunities, like this new job you want to take. It's too far away.

Sorry, but as you said, you are "kind of stuck."

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