Have to Transfer But Can't Sell the Home - What to Do

Reader Question: "My husband will be transferring to another state. With so many foreclosures in our area, it is impossible to sell our house. We'd have to give it away. We talked with our lender and they are not willing to do a quick sell, and one lender actually told us to walk. What are other options to foreclosing, when we can't afford to rent out our current home? What can we do and what would a lender think of our situation if we wanted to buy another house after a job transfer?"

Unfortunately, I don't know what advice to offer based on the information you've provided. You seem to have eliminated most options in the course of asking your question.

I'm assuming from your question that you are upside down in your mortgage right now, meaning you owe more than the home is worth. This is a common problem right now, with more than 12 million Americans in the same situation. You're right, it's tough spot to be in, and nothing I can say will change that.

There are some new mortgage modification programs available for people in tough spots, but these are typically offered through a homeowner's current lender. And it sounds like your lender is not offering you many options.

If your lender has said no to a short sale process, then I don't see any other way to sell the home. If you can't afford to make two mortgage payments, then you probably won't qualify for another mortgage loan in the state where you're moving.

Most real estate experts are telling people in this situation to stay put and hope the market improves, driving values back up. You might want to seek the help of a financial adviser who specializes in the real estate field. He or she may be able to provide more advice than I can.