I was laid off & found a new job an hour away from my home. I also took a $13k pay cut. I have my house on the market since 7/1/2014. All offers are coming in that would cover what I owe the mortgage company BUT with closing costs I would need to bring to the table $14k. I can't afford to take a loan for $ 14k nor would I - it seems crazy. I have to move soon & am approaching time when I will not be able to afford mortgage payments.
What are the best options?
Sellers' closing costs are far less than $14,000, so I assume you are talking about paying for the buyer's closing costs. In most cases, those are significantly less than $14K too unless you're in a high cost state such as New York or Florida and have an expensive home. You have several options, not sure you'll love any of them though. You can attempt to get your lender to approve a short sale (where they accept less than the full amount due for the payoff) but that means you cannot finance another home for a minimum of 3 years. You can give the lender keys to your home (deed in lieu of foreclosure), that entails at least 4 years before you obtain another mortgage. You can completely walk away from the home, which would lead to a foreclosure (7 years wait). All those options involve significant long term damage to your credit score. You could rent the home and hope the rent is enough to cover the payment and maintenance expenses. Lastly, you can take the best offer, pay what is needed to satisfy the loan you agreed to, and move on as planned. Given those choices, coming to the closing table with some cash doesn't seem like the worst end result. Guess another option would be to keep the house on the market and hope for better offers (of course, house will have to appraise for at least sales price regardless), which entails additional mortgage payments and upkeep expenses.