Profile picture for rulyg80

Should I buy a 2nd home now, even though I'm upside down on my home now? wife would buy 2nd.

With the market the way it is, I would really like to get in on buying a new home... I would rent the home I own now, but would have to pay a difference of about 1,000 to my mortgage.  My home is under my name, but would buy 2nd home under wifes name.  we both have income.
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August 08 2009 - Fontana
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Answers (9)

It is a good market to make a real estate investment. Be sure to choose an agent who knoss the area inside & out. 
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August 10 2009
Profile picture for carmen25
DebtsNMesses,

Sexual discrimination? Or you mean Marital Status discrimination?
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August 10 2009
Greg, not true. Hub bought a home on his income only, w/o mine and we live in Calif. He was not required to list my assets/liablities. If the banks require to see the hubs assets/liablities in this case, that would clearly be sexual discrimination.
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August 10 2009
Profile picture for Netizen
To state the obvious: if prices take a double-dip, you will sink deeper underwater. Put another way, if housing is at the bottom of the quagmire; is there deep sludge to settle into? And if your second home increases in value because housing prices become buoyant, sure it could offset losses on the first home. You're standing at a dollar slot machine trying to decide whether you're feeling lucky!

Any responsible gambler only plays what they can afford to walking away after losing. Can you really afford two houses if the recession double-dips and rents continue to fall? Will you shrug it off as "oh well!" and make payments on two houses?

My sister owns three houses all underwater. She used the same reasoning as you and yet three mortgage payments strain a healthy six figure income. Renting in this economy is an exhausting challenge. The bottom looked solid, but she continues sinking. Renters keep giving her a little air here, a little air there, but one renter left the flu to the fireplace shut and cost her $500 in repainting the ceilings! (The rental agreement keeps mushrooming as she adds new exclusions to limit losses… now if you use the fireplace with the flu shut, expect to lose your deposit.) She does not expect to come up for air for another decade... a long time to hold one's breath even when they're tenured professors at the top their game.  
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August 10 2009
Profile picture for richeil1
Do you have a tenant for your rental ?  If so buythe new house,
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August 10 2009
Profile picture for carmen25
Wouldn't community property only apply if the current house was acquired after they were married? If the OP purchased before they were married, then it would only be his debt?
For the new home, she can apply as "Married, sole and seperate."
I guess the lender still has the right to ask for the spouse' info because we live in california. I'm not sure how much info they will want the wife to disclose. Im not a lender, just my 2 cents.
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August 08 2009
You are in california ... community property. Your debt is her debt. She would have to be able to qualify for both mortgage payments on her own so trying to just put her on the loan by herself solves nothing.You cannot use rental income because you have no equity in the property. If you can both qualify for both mortgages then you have a chance.
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August 08 2009
Profile picture for carmen25
What if the current home is only in his name? The second home will be in his wife's name only. MikeEmery, is all you say still apply?
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August 08 2009
If you purchased a second home and needed to do a loan modification on the first home (which would be a rental at that point) a loan modification would be out of the question.

If you then attempted a short sale, because this is no longer your primary residence, the bank would probably turn you down.

If you went into foreclosure with the first home, you might be liable for the difference between the sale price and the loan value. Once again this is because it is no longer your primary residence. And the bank might even attempt to attach a lien on your new second home.
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August 08 2009
 
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