Home Buying in Lathrop>Question Details

Frank, Home Buyer in Lathrop, CA

Should we purchase a new house and walk away from the upside down crappy mortgage house?

Asked by Frank, Lathrop, CA Mon Sep 29, 2008

me and my wife purchased a house in california 1 1/2 yrs ago for 660,00 now its worth 380,00 with our credit score and income we qualify to buy a second home up to 300,000 the loan we have now is a interest only loan for 10 yrs, we would like to buy the second home and forclose on the first one, should we try to list it for sale first or just let it forclose, we could not afford to pay the diffrence if the house sells,

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I might be wrong (I'm not a real estate pro, or a lawyer) but this might actually constitute fraud. I'd strongly suggest consulting professionals before you do this.
1 vote Thank Flag Link Mon Sep 29, 2008
If your house is in lathrop, it's less than what think, it might be around $200k now. You're not the only couple that got into this mess, I reside in Lathrop too. However, there are consequences on doing what you want to do. The government is getting strict with the "Buy and Bail" situation.

First of is this you're primary residence? If this is your primary residence, then talk to your bank for a Modification so you can afford paying for the house, now if you can't do modification, then short sale the property, however, shortsale is treated as foreclosure by Fannie Mae, so if you sell your home, you will wait for another 3 years so you can get an FHA loan to purchase another home.

You might not like the situation but that is what is right. If you want to purchase another house, then you will require to put at least a minimum of 20%, plus, you should be able to afford both mortgages, the one you're buying plus your old home. And If you can do that and by all means buy another home, but as everybody is suggesting to you, don't just walk away from your old house.
0 votes Thank Flag Link Mon Apr 20, 2009
Frank,

Our advice is to consult an attorney and completely understand the implications of going the "foreclosure" route. Too many people are going in this direction without first accessing important information.

Our advice is, do your homework....then decide.

Good luck
0 votes Thank Flag Link Tue Sep 30, 2008
talk to your bank about short sales where they take alot less but i know them banks their stubborn about helping anyone its not fraud to walk if your disgusted its the bank that took the chance altough itll hurt your credit but you gotta do what you gotta do to keep a roof over yr families head right ? hell with the bank if i was upside down that much id buy the other home and say f the other bank let me have the friggin boat anchor, i have 200 k equity on two homes a rental and amy home and them greedy creepy bank wont even lend me to stay afloat i hate the banks their the devils of the world hahaha banks stink period
0 votes Thank Flag Link Mon Sep 29, 2008
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