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Answers (10)
- Francis Lee, "Creative Solution"
- Contributions:29
If you want to sell your house, you have to beat your competition. Do you know how much the house around you are selling for and the condition that they are in? Many sellers think that they are not in dire strait, and therefore they do not have to compete with the foreclosure properties...wrong. The banks are taking away the very little qualified buyers that is available in the market. Almost every buyers that I worked with are looking for a deal......If you are able to sell both your house, would you be looking for a good deal in your next house? or you are willing to pay above market price?
We have to think like buyers in order to sell in today's market. When the buyers walked into your house, will they think; "Wow! This is a better deal than the last few houses that visited." It is not always the lowest price house that sells, it is the best value house that sells."
You can also choose not to compete by working the niche market, rentals or being creative. Every situation varies.
Ask yourself this, do you really need to sell in this market? Is there other solution?
Do you really need to buy another house? You already have two. You can live in one house to ride out the storm and rent the other house out to reduce your monthly obligation. Maybe it is time to cut back temporary to pay off the debt. The house price will remains low for another year or two.
We have to think like buyers in order to sell in today's market. When the buyers walked into your house, will they think; "Wow! This is a better deal than the last few houses that visited." It is not always the lowest price house that sells, it is the best value house that sells."
You can also choose not to compete by working the niche market, rentals or being creative. Every situation varies.
Ask yourself this, do you really need to sell in this market? Is there other solution?
Do you really need to buy another house? You already have two. You can live in one house to ride out the storm and rent the other house out to reduce your monthly obligation. Maybe it is time to cut back temporary to pay off the debt. The house price will remains low for another year or two.
- Deborah Garvin, "loanmonarch"
- Contributions:438
Work with your listing agent to determine the "why" the properties are not selling. You state you have 40K in equity....perhaps. Perhaps not. The market pretty much decides how much equity we have. Given the cost of carrying both mortgages perhaps you would be better off to give up some of the "equity" to get the property sold.
Is it the condition of the property? Get you agent marketing it as a custom FHA 203K loan and create the vision.
On the market for over a year and no offers? I think a lot of agents would agree that it may make sense to pull the houses off the market for a minimum period of time and relist so there is some renewed interest.
Lastly, to dispel any illusions. Lenders are now enacting (have been for the past year or so) a very strict "Buy and Bail" prevention guideline. Unless you are a seasoned investor (two years tax returns), no amount of rent can be used to offset your mortgage payments. In short, you would have to qualify for both mortgage you currently have and the new mortgage. Ouch.
The best solutions seem to be: 1). Move into one of the property's (as already suggested) and rent the other. Build some reserves and pay off some debt. 2). Get brutally committed to selling both properties, what ever it takes. Forget the 40K "equity" and sell your home for the best price you can...but SELL it. Then take whatever proceeds you can from that sale to make up any deficiencies on the sale of the other property.
Yes, I am advocating that you take the "hit" and not try to short sell your husband's property if at all possible. A short sale would kick you out of the purchase market for two years and should be avoided if reasonably possible. This suggestion may seem extreme; however, consider the cost of carrying these properties month over month. You are spending any perceived equity one mortgage (neigh, two mortgages) every month.
Best to you.
Is it the condition of the property? Get you agent marketing it as a custom FHA 203K loan and create the vision.
On the market for over a year and no offers? I think a lot of agents would agree that it may make sense to pull the houses off the market for a minimum period of time and relist so there is some renewed interest.
Lastly, to dispel any illusions. Lenders are now enacting (have been for the past year or so) a very strict "Buy and Bail" prevention guideline. Unless you are a seasoned investor (two years tax returns), no amount of rent can be used to offset your mortgage payments. In short, you would have to qualify for both mortgage you currently have and the new mortgage. Ouch.
The best solutions seem to be: 1). Move into one of the property's (as already suggested) and rent the other. Build some reserves and pay off some debt. 2). Get brutally committed to selling both properties, what ever it takes. Forget the 40K "equity" and sell your home for the best price you can...but SELL it. Then take whatever proceeds you can from that sale to make up any deficiencies on the sale of the other property.
Yes, I am advocating that you take the "hit" and not try to short sell your husband's property if at all possible. A short sale would kick you out of the purchase market for two years and should be avoided if reasonably possible. This suggestion may seem extreme; however, consider the cost of carrying these properties month over month. You are spending any perceived equity one mortgage (neigh, two mortgages) every month.
Best to you.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
You need 30% equity in both properties to count 75% of the rental income in your income qualification. Otherwise you will have to qualify with all three payments which you may find difficult.
You'll also need 6 months reserves on the rentals and 2 months reserves on the new purchase in addition to your down payment and closing costs. If you have no savings I don't see how this will work.
Robert Ribas's suggestion probably would be the best solution.
Happy funding, Rudi
You'll also need 6 months reserves on the rentals and 2 months reserves on the new purchase in addition to your down payment and closing costs. If you have no savings I don't see how this will work.
Robert Ribas's suggestion probably would be the best solution.
Happy funding, Rudi
- Isaac Weiser, "The123Mortgage"
- Contributions:14
your story is not all that strange, I've seen it with my own clients and the bottom line is this: if you can afford a new purchase, then you should qualify.
rental income will reduce your dept-to-income ratio, but each lender will treat the calculations of it slightly differently
rental income will reduce your dept-to-income ratio, but each lender will treat the calculations of it slightly differently
- Laurie Eastman, "Laurie Eastman"
- Contributions:4
There are several reasons why your homes may not be selling. Obviously, it needs to be priced right in this market. The buyers are very saavy and always seem to be looking for a deal. Also, make sure your home is in tip top condition. Declutter as much as possible, people like to view themselves living in a home and it is hard to do that with a lot of stuff around. Sometimes just doing a few minor adjustments make a huge difference. Good luck!
why not move into one of the homes, and rent the other one out? at least for now, to shore up your ongoing financial picture.
You could use the rent from one to in this order:
1. pay off all the credit card debt.
2. pay off the car debt.
3 .build up a nest egg/down payment.
With a good down, and zero other debt, PLUS a rental history on one home on your tax return, you would be much more likely to get another loan.
You could use the rent from one to in this order:
1. pay off all the credit card debt.
2. pay off the car debt.
3 .build up a nest egg/down payment.
With a good down, and zero other debt, PLUS a rental history on one home on your tax return, you would be much more likely to get another loan.
- SoCal_Engr
- Contributions:5663
"The interest rates are the lowest they've been in 30 years. The market is full of buyers and the market time for a house or condo in Honolulu is 30-40 days.
Please contact me if I can be of any assistance."
Really? I'm sure someone posting from Albany, GA will be kicking down your door.
More seriously, how does it look when you basic ignore the details provided by the OP and post a "Call Me" post?
Please contact me if I can be of any assistance."
Really? I'm sure someone posting from Albany, GA will be kicking down your door.
More seriously, how does it look when you basic ignore the details provided by the OP and post a "Call Me" post?
- Maria Morton, "MariaMorton"
- Contributions:716
You are not the only people in this situation. It sounds a little complicated but can be managed if you analyze the situation carefully and make thoughtful decisions.
If I were you, I would meet with a local real estate agent. Tell them the situation. Let them figure out which house could be sold netting you the most money. They can also help you figure out which house could be rented for how much. You're going to need to think about what would be the best move for you. You may end up selling one and living in the other; selling both and either renting or buying another home for yourselves; renting both and renting a home for yourself; or renting one and living in the other.
Not all real estate agents will be willing to help you do this; find one who will work with you and knows what they're doing. (Not necessarily the one with all the signs in the yards)
In addition to the housing, you probably realize that all the credit card debt and medical bills are hurting you. Is there any way you could trade the car in on one for a lower monthly payment? Also, try calling the credit card companies and asking for reduced payments for a year. This will not be easy or fun; you will need to be persistent while maintaining your calm. Is there any way the college kid could get a scholarship or grant? Maybe talk with the guidance counselors at the college to find out more.
The good thing is that you realize there is a problem and are beginning to seek solutions. I wish you success in your endeavor. Remember that other people have been where you are now and have, with much work and planning, managed to improve their finances in a few years time.
If I were you, I would meet with a local real estate agent. Tell them the situation. Let them figure out which house could be sold netting you the most money. They can also help you figure out which house could be rented for how much. You're going to need to think about what would be the best move for you. You may end up selling one and living in the other; selling both and either renting or buying another home for yourselves; renting both and renting a home for yourself; or renting one and living in the other.
Not all real estate agents will be willing to help you do this; find one who will work with you and knows what they're doing. (Not necessarily the one with all the signs in the yards)
In addition to the housing, you probably realize that all the credit card debt and medical bills are hurting you. Is there any way you could trade the car in on one for a lower monthly payment? Also, try calling the credit card companies and asking for reduced payments for a year. This will not be easy or fun; you will need to be persistent while maintaining your calm. Is there any way the college kid could get a scholarship or grant? Maybe talk with the guidance counselors at the college to find out more.
The good thing is that you realize there is a problem and are beginning to seek solutions. I wish you success in your endeavor. Remember that other people have been where you are now and have, with much work and planning, managed to improve their finances in a few years time.
- sunnyview
- Contributions:25135
If you want to sell, you are going to have to find out why your house is not selling. You will probably have to lower the price. Ask your agent which house is going to be the easiest to sell and aggressively market it. You may need to drop the price below the market point to get interest and you can probably do that on the house that has the equity more easily.
These houses will slowly choke you if your don't sell one or rent one for enough to be able to hold them long term. Make the hard decision now and move on with your lives.
These houses will slowly choke you if your don't sell one or rent one for enough to be able to hold them long term. Make the hard decision now and move on with your lives.
- Eric Bricker, "Bricker Broker"
- Contributions:1
The interest rates are the lowest they've been in 30 years. The market is full of buyers and the market time for a house or condo in Honolulu is 30-40 days.
Please contact me if I can be of any assistance.
Sincerely,
Eric Bricker
Please contact me if I can be of any assistance.
Sincerely,
Eric Bricker
Help! My husband and I each own a house and would like to sell both to buy one. No one is buying!
I have $40,000 equity. He has none as he bought in the prime and now value has dropped. Our total mortgage payments for both are $1500. Our net income is roughly $5500/month. We have no savings, as we are maintaining two households, have $8000 in credit card debt, medical bills, a $600 car payment, and a kid in private college. Both homes have been on the market for over a year with no offers. Could we rent them out and still possibly qualify for another mortgage to buy a home of ours together?
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