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Answers (9)
- Mat Grzadzinski, "Mat G."
- Contributions:17
I may be jumping to conclusions, but do you really need to spend $300k? Maybe you could consider spending less on a new house, which would increase the likelihood of your ability to qualify with both obligations.
If you're looking for additional solutions, please contact me.
If you're looking for additional solutions, please contact me.
- Angie Boggeman, "angie boggeman"
- Contributions:469
You could consider a lease purchase. Sometimes a higher price could be paid if the buyer has to have time to get their financing straightened out. "Price versus Terms"
You could also consider a Short Sale.
You could also consider a Short Sale.
- Kelly Dix, "Kelly Dix"
- Contributions:15
Short sale is an option, but usually you have to have a hardship that your lender will approve. If not, you may not qualify for a short sale. The good thing is that you are not alone. There are many people in this same situation. Hopefully the government will find some way to help people who are "underwater" on their mortgages but still pay their payments on time. You will only be able to sell your home at a "market price" for that area. Buyers will know what other homes are selling for around there. Hope this added some insight too.
- Mark Gelbman, "Mark Gelbman"
- Contributions:222
Your choices are somewhat limited. You can go for a short sale, but you will need to wait a minimum of 3 years to obtain a FHA financing. Fannie and Freddie will make you wait longer.
You need to sit down with a lender to find out how much you would qualify for a new mortgage, with the current mortgage, taxes, insurance, and the rest of your debt. I can help you with that. Any rent that you can get for your current home will not be counted as income due to the fact that you do not have any equity. I can provide this for you.
You need to sit down with a lender to find out how much you would qualify for a new mortgage, with the current mortgage, taxes, insurance, and the rest of your debt. I can help you with that. Any rent that you can get for your current home will not be counted as income due to the fact that you do not have any equity. I can provide this for you.
- Adrienne Realiza, "ARealiza"
- Contributions:13
If you really need to accommodate your growing family maybe you can try qualifying for a home now then rent out your current home and sell when market picks back up or short sale right after (but will affect your credit for a few years). If you would like a loan modification first it could disqualify you from a purchase loan because most cases a loan mod will not be approved unless you are late. Also b/c of dings on credit report you may get a high interest rate on a new loan which qualifies you for less purchase price. Good Luck!!
- Karen Paytas, "Karen. Paytas"
- Contributions:77
You need to find out if you can qualify for a mortgage while still owning your current home. If you do you can then rent out your existing home after purchasing a new larger home. You also have the option of trying to modify your existing mortgage to a lower payment. If you decide to short sale your home you would most likely be unable to purchase a home for 3 years due to Fannie Mae underwriting guidelines.
Good Luck!!!
Good Luck!!!
- Anita Newton, "Anita Newton"
- Contributions:34
Lori's suggestion to get a good estimate of value from a Realtor is good. Also, you may be able to rent it out if you can get enough rent to cover the mortgage. But if you can't do that then you might consider a short sale or ask your mortgage company what programs they have to help modify your mortgage. There are some programs that could be very helpful, but you need to contact the mortgage co or bank holding your mortgage. Look carefully at the costs involved in modifying the mortgage compared to the benefits.
When you say you have paid "X" amount so far for the house, do you mean that you have made that much in mortgage payments and/or down payment? Remember that almost the entire mortgage payment at first goes toward interest and your principal isn't going down much each month.
In Florida where I live prices have dropped a lot since the high in 2005 and 2006. We are losing equity instead of building equity. That means you are paying every month but the house is worth less and less. An "expert" told us in a meeting recently that he thinks it will take up to 20 years to regain the prices we had in 2005. If you have outgrown your house then you'd probably be better off arranging a short sale to be able to buy at today's prices and interest. If your credit is very good then the short sale may not hurt your credit too much, but I'm not an expert on financial advice, Also be aware of possible tax penalties. Educate yourself and choose the option that fits you best.
Hope this helps you understand your situation better.
When you say you have paid "X" amount so far for the house, do you mean that you have made that much in mortgage payments and/or down payment? Remember that almost the entire mortgage payment at first goes toward interest and your principal isn't going down much each month.
In Florida where I live prices have dropped a lot since the high in 2005 and 2006. We are losing equity instead of building equity. That means you are paying every month but the house is worth less and less. An "expert" told us in a meeting recently that he thinks it will take up to 20 years to regain the prices we had in 2005. If you have outgrown your house then you'd probably be better off arranging a short sale to be able to buy at today's prices and interest. If your credit is very good then the short sale may not hurt your credit too much, but I'm not an expert on financial advice, Also be aware of possible tax penalties. Educate yourself and choose the option that fits you best.
Hope this helps you understand your situation better.
- Lori Ann Fisher, "Lori Ann Fisher"
- Contributions:12
Be sure that your neighbor's home was in comparible condition before you make any decisions that could end up hurting you. I would start by getting a market comparison (contact a realtor to see what your home should sell for). You may be able to do a short sale, but that would effect your credit. If you can afford a second mortgage on a new home and keep your current home to rent out, you may be able to make money and keep your credit. We are doing a ton of leases these days for people in your situation. Best of luck with your decisions!
- Joe Clemons, "reojoe63"
- Contributions:39
You may want to lease your current home. You can contact me by clicking my name and we can talk further. Thanks, Joe
Bought house for 160k and paid about 40k on it so far. Neighbor just went for 60k.how do we get out?
we are stuck aren't we. we want to get a bigger house to accompany our family. looking for something in the 300k range. where do we even start?
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