Answers (7)
Best Answer
- wetdawgs
- Contributions:39535
No, you aren't stuck in the house for the duration of the loan but the choices may involve some discomfort. There are many ways people are getting out of the situation:
Selling and covering the $$ difference then renting for a few years to rebuild a down payment before buying again.
Strategic default, then renting for several years to be eligible for a loan. (Talk with an attorney before getting involved in something like this).
Renting now and renting out your current home so that you have a tax record of rent for a couple of years to count on your income.
It is not easy, and many are in your shoes.
Selling and covering the $$ difference then renting for a few years to rebuild a down payment before buying again.
Strategic default, then renting for several years to be eligible for a loan. (Talk with an attorney before getting involved in something like this).
Renting now and renting out your current home so that you have a tax record of rent for a couple of years to count on your income.
It is not easy, and many are in your shoes.
- livethegoodlife
- Contributions:8
@steadystate---FYI, no crap that this was a result of our doing. I'm simply here seeking advice on a real estate forum that offers advice to those in similar situations. And why the heck are you bringing the Constitution into something like this?? Yikes! Moving on...to those that were kind enough to offer your professional advice for homeowners in our situation, I appreciate it. @wetdawgs and @workabee--Thank you! Any other (professional) advice is always welcome... @Linda, that could be a possibly as my husband has offices all over the country...
- Linda Strasberg, "L Strasberg"
- Contributions:2563
- SteadyState
- Contributions:874
Pardon me for calling a spade a spade - but this was the result of your doing. Owning a bigger home is not a guaranteed right in the constitution.
The options are not pleasant - take a loss or remain in the home.
If the opposite had happened - you made a windfall would you have given a part of the windfall back to the tax payers? I suspect not so one should not wish for help when bets do not go our way. (Yes - it was a bet as it always is, when making an investment)
The options are not pleasant - take a loss or remain in the home.
If the opposite had happened - you made a windfall would you have given a part of the windfall back to the tax payers? I suspect not so one should not wish for help when bets do not go our way. (Yes - it was a bet as it always is, when making an investment)
- livethegoodlife
- Contributions:8
Thank you for your responses.
So basically, we are stuck in this house for the duration of the loan....? If we want to purchase a 300k home, we need to have at least 60k cash and show that we can cover both loans, correct?
How else are people getting out from these situations? It seems as if many people are in similar situations.
We don't have a hardship---we just don't want to be here forever. It wasn't really the plan....
Thank you!
So basically, we are stuck in this house for the duration of the loan....? If we want to purchase a 300k home, we need to have at least 60k cash and show that we can cover both loans, correct?
How else are people getting out from these situations? It seems as if many people are in similar situations.
We don't have a hardship---we just don't want to be here forever. It wasn't really the plan....
Thank you!
- wetdawgs
- Contributions:39535
Plan on at least a 20% down payment, or perhaps 30%.
Plan on showing you have the income to carry both mortgages at the same time (not including rent).
If you can't do the above, the sell and bring the $100k to closing so you can move on and immediately buy a new home. If someone suggests a short sale, be aware that one must qualify for a short sale by demonstrating a hardship. Choosing to expand one's family is not considered a hardship by lenders.
Plan on showing you have the income to carry both mortgages at the same time (not including rent).
If you can't do the above, the sell and bring the $100k to closing so you can move on and immediately buy a new home. If someone suggests a short sale, be aware that one must qualify for a short sale by demonstrating a hardship. Choosing to expand one's family is not considered a hardship by lenders.
- workabee
- Contributions:1073
It'll probably take 25% down on the second and you'll have to qualify to carry both payments together. Too much buy and bail so the lenders are covering their bizness upfront.
Is there a way to be approved for another primary residence if current home is underwater?
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