Dear Laurie,
There is a chance you may qualify for the new purchase. It depends where your Debt to Income ratio is and what kind of Income you can show. I would contact myself or a mortgage professional that you can trust to run the full scenereo. The very best of luck to you!
Michael


Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@aol.com
michaelddelp@verizon.net
www.mortgagepro.instantlender.com

Tue Aug 5 2008, 06:28

Dear Laurie,

You have layed out a scenopsis that has many layers.

With one of my hats as a mortgage broker, I would need to know what your NET income is in 07 along with what amount of depreciation you have that I can add back.

Then, we need to know your current monthly payments on items other than your current mortgage to see where it all falls into place.

As for the real estate side, every transaction is different in terms of demand for properties based on the property itself and the location.

Since you did not specify where the home is, it is hard to tell what you might be able to get it for.

Those REO numbers are so generic for the entire country, that also makes it hard to just throw out a number.

Mon Aug 4 2008, 13:37

Hello Laurie,

What are your plans with the purchase? Do you need repair and fix-up capital or are you planning to do the repairs and fix up yourself? We have some programs within our office that may help you with whichever road you decide.
In regards to the second question, it depends on the banks. Due to the amount of homes on the books, you never know what the banks are willing to accept.

Mon Aug 4 2008, 12:55

Laurie,

Well it seems as if you already done your homework which is great! If you rent your current home you can look to having 75% of the rental income applied towards your monthly obligation. Your scores are strong. So that is not a problem. If your income will cover you DTI(debt-to-income ratio) you should be good. Is your current home under FHA ? If it is not then you can purchase your next home under FHA guidelines which allow for lower down payment if this situation applies to you. This will make a difference.----The %%% really does not mean anything when it comes to your transaction. Each transaction is different. Timing also plays a role. Your goal is to get the home for as little as possible regardless of debt owed. I'm licensed in PA for real estate and mortages. I'd be happy to assist you. Feel free to call me anytime direct. 609-876-5817

Mon Aug 4 2008, 12:55

If you have 20% dp, you should be fine. For your second question, I wouldn't worry about that. Just offer a fair price, the sales price relies on current market conditions not old debt. Good luck.

Mon Aug 4 2008, 12:18