Home Buying in Sherwood Park>Question Details

Gen, Home Buyer in Sherwood Park, Detroit...

We have a mortgage in both of our name, payments current. Is there a why we can get out of the house for a new one with out missing up our credit?

Asked by Gen, Sherwood Park, Detroit, MI Tue Sep 21, 2010

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Tom Lipinski’s answer
Hello Gen,

To answer your question I need more information. I'll take a stab at it while making a bit of a guess about your current situation. I am assuming that your house will not sell for what you owe on it. As a responsible borrower you are meeting your obligation. Since the loan is in both your names, your "mortgage-ability" is not what you need to purchase the new house. You realize that there are some real good deals out there that you would like to consider. OK, that is my guess of your situation.

Here are your options without bruising your credit: 1) Do nothing and stay in the house. 2) OK, I didn't think you would like that one. You could sell your house and bring the shortage to the closing. That is if you have the cash. If you do have the cash, you might negatively impact your down payment on the new mortgage. 3) If you rent your house as suggested below, you will not eliminate the debt by presenting a signed lease to your mortgage company. That worked pre-2006, but does not eliminate debt today. If you can qualify for the new mortgage without discharging the current mortgage renting might be desirable. Check it out with a mortgage loan provider to determine your exact standing if you lease your home. If you are concerned about becoming a Landlord there are several best practices that you would want to adhere to. I can share them with you later. Being a Landlord can be good experience if you do it right. Any other option, and there are several, will blemish or ruin your credit worthiness. If you have an questions feel free to contact me through Trulia or my web site below.

Best regards,

Tom Lipinski
Web Reference: http://www.tomlipinski.com
0 votes Thank Flag Link Tue Sep 21, 2010
I would suggest you look into renting out your current home. If you have it rented out it will not completely counted on your debt ratio so you can afford to purchase something else. I dont know what area you are in but the rental market seems to be pretty good everywhere. Dont know if this fits your situation but hope it helps. God Bless You!
0 votes Thank Flag Link Tue Sep 21, 2010
yeah, you can sell it and pay off the note in full :)
0 votes Thank Flag Link Tue Sep 21, 2010
You need to provide more details. Are you unable to sell your home without doing it as a short sale? If that is the case, the only way to be able to do what you want is if you have money for a down payment, and can qualify to carry both your existing debt, and the additional debt of the new mortgage. If you have an FHA loan now, you cannot get another FHA loan, so you would need more money for a down payment. If you do not have an FHA loan now, you can purchase something else with as little as 3.5% down.
0 votes Thank Flag Link Tue Sep 21, 2010
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