Porting/Transferring Mortgage

[sparkle1908]

When I purchased my home I was at a pretty decent income...then I lost my job and was unemployed for a few months...fell behind on bills and mortgage payments...found another job a few months later BUT it is $20000 LESS than I was making before. So it has been very hard to maintain my mortgage payments and I am struggling to do so...I applied for a modification and was "approved" BUT it is only about $60 less than my normal payment...not going to really help me if I am still struggling to pay that plus my other bills/debt. Is it possible to "port" or "transfer" my mortgage, if I found a cheaper home? I have had comps done (my friend is a real estate agent) in my neighborhood and my home could sell possibly for an "estimated" $225K...I paid $195K for it Has anyone done a "transfer" if that is something that can be done? If so, what steps did your mortgage company have you take? I know I could call them (and I will once I have enough time to sit on hold and wait for a rep)...just trying to get some options/thoughts... Thanks...

[Anonymous]

Hi sparkle1908. Sorry that you're falling on hard times. I can relate, as I got my first mortgage at the worst possible time (right before the last housing market crash).

Unfortunately, I don't think you'll be able to transfer your mortgage to a cheaper house. A mortgage is a loan that is secured by a specific piece of real estate and real estate is not interchangeable. Every house and piece of land is considered unique. Therefore, you cannot transfer your mortgage from one property to another one. If you sell the existing house then the money will go to the mortgage company to pay off that loan. If there is a shortage between the sales price of the house and the mortgage then you will have to pay the difference (unless the bank agrees to a short sale). Once the home is sold and paid off then you will have to apply for a different mortgage for the new house, even if it is with the same mortgage company. You will have to go through the same mortgage process that you went through when buying the first house.