It all depends on how under water you are on your property. Lenders do take into account negative equity when they are trying to help you get a loan. With that said, as long as your next property is bigger you can do low money down convention financing. The underwriters want to be sure you're not purchasing just for an investment.
When was the last time you had an agent to a market analysis on your home? I work with a lot of listings and what I'm noticing is that today's Sellers aren't aware of how good the market is for them to sell. Properties are being listed and sold for higher now than several months ago because inventory is very low.
Even before getting pre-approved for a new home, I'd definitely recommend you have an agent who's aggressive with their marketing do a Comparative Market Analysis on your current home. You might be in a better situation to sell than you think.
Prudential Florida Realty
A lender could see this as a set up for a strategic default on your existing home. They may see other scenarios playing out also, each leaving the bank inheriting a deficiency. Clearly you can see the concerns the banks may have.
Meet with a multi-dimensional real estate professional to assess your situation and the alternatives available to you. The lender your agent recommends will be essential in achieving the outcome most beneficial to you.
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
Vincent Paige |REALTORÂ® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
We specialize in short sales
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Thank you Tom