Profile picture for user0494488

I just retired and am moving to another state to be near my family. I am buying a new house in SC.

My house in Sacramento is worth much, much  lower than what I still owe.  I am required by my SC lender to sell my house here in Sacramento in order to qualify for the new loan.  I was adviced by a realtor that the best way is to do "short sale".  Any other advice?

  • March 12 2013 - Sacramento
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Answers (4)

If the lender in SC says you won't qualify to buy in SC unless you sell your home in Sac, and your Sac home is underwater, you are in a pickle. This is assuming that your lender in SC is correct and that the agent who told you that your home needs to be a short sale is correct, and both could be wrong.

Generally speaking, borrowers who have 6 months of reserves for both homes can often qualify to own two homes at the same time, even if one of them is underwater. So, you might want to ask another lender to look at your financial situation and try to preapprove you.

You also might want more than opinion of value for your Sac home. Although, I list and sell more short sales than probably anybody in the Sacramento area, I am finding many homes that would have been a short sale last year are now equity sales this year.

However, the long and short of it is if you have to short sale in Sac, you can't buy in SC (not in your name anyway). And if you can qualify to buy in SC, you probably will not qualify to short sale in Sac after buying in SC.
  • March 12 2013
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Perhaps talk to a different lender. You may want to ask the lender if you rent out your home here, would you qualify for a loan in SC? Then, after you have purchased a replacement home, if the financial burden is too great, short sell your home here. You probably would not qualify to purchase a new home if you short sell here first. Home prices in the Sacramento Valley are rising fast, so if you haven't gotten your home valued (by a Realtor, not Zillow), do that first.
  • March 12 2013
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http://www.sacramentohomehelp.com/
  • March 12 2013
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Profile picture for wetdawgs
If you sell short, there are many things to consider, here are a couple:

1.  You will have to qualify due to financial hardship, and that doesn't simply mean that the house is underwater.   Here's a link to more about qualifying for a short sale.   Please talk to your financial advisor.

2.  If you have a short sale, you may not be able to buy for a couple of years (or more) at your destination.

  • March 12 2013
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