Home Buying in 33060>Question Details

08ram1500, Home Owner in 48066

what is best option to do with current house... i own a home that i owe 80k on and is probably worth 50k and i want to buy a new home with the way

Asked by 08ram1500, 48066 Sat Jan 14, 2012

the prices are.. i bought a home in 2001, built in 1945, 900 sq ft for 110k. no property at all...living on main road...can't have windows open in summer!! new house....3 acres, 2000 sq ft, 3 bath 3 bedroom....built in 2000, on back country road, pond, etc............married..house is only in my name (purchased before marriage).....between 2 of us we make about 90k. Only money we owe out is 1 car loan. which is 365 month and 3k in credit cards and other then that owe nothing to noone. obviously other then the shed we live in!

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do a short sale but donot stop paying your montly payments but yo have to say that you have a hardship call me 954-8540629
0 votes Thank Flag Link Sat Sep 1, 2012
The market has no were to go but up from here. So although there are many people that estimate how long it will take for your condo to be in the positive again, there is no true way of telling. As you may know the real estate market is just one that has no predictions, no matter what anyone has to say, or everyone would have known of the balloon that popped years ago. It was obvious at the time of the balloon but unknown when it would blow up.
I would keep the condo, rent it out. Now this does count against you for qualification purposes on the mortgage end, but it will help you in life after new purchase to offset the mortgage payment. So although you can't use it to help you qualify for more money, it’s in your best interest either way for the condo rental income not to count for qualification purposes, this way you always know that the new mortgage payments is being calculated and in accordance to Fannie Mae & Freddie Mac on home buying statics of how much you can truly afford.
I wouldn’t suggest short sale or foreclosure because although FHA will allow you to purchase a new home with outstanding circumstances (which any lender can help you with) you would not have any good outstanding circumstances as it seems you both get paid well and have no debt. It’s not worth hurting your credit with having a short sale/foreclosures on credit. So although it is underwater at the moment it’s not worth losing your great credit history over a home that will be offset with rent either way.
It’s a tough choice to make but one that you will have to make for you family, I wish you the best and hope it works out for you and your family. I would hold on to the condo because truly you have no choice, if you want to continue with great credit history. So just rent it out, and move on into a bigger home that you qualify for. I am sure you qualify according to what you stated for a decent size home in a good neighborhood. As long as you have a good lender that won’t give you bad advice I think you will be fine.
If I can help you out in any way don’t hesitate to contact me.
0 votes Thank Flag Link Fri Aug 31, 2012
The real question that you need to ask is not what the house is worth but serves what purpose?
The same question that you answered when you bought it and the reason why you took on the responsibility of the debt.
The price of the original home and it's location was as evident to you than as it is now. Or was it?
It appears that you were prioritizing affordability over esthetic values and location. That is not a mistake but a wise defensive choice.Make sure that you do not overextend yourself by the new debt that you are planing to take on or jeopardize your credit at the same time. Patience is a virtue. You have two choices in my opinion. Stick it out and stay with your original home till you can sell it as the market recovers. The other is to have your wife buy the other property on her name alone if she could maintain it and afford it. As you sell your home and recoup some of your equity you may join her and add your name on the title and share the debt. I would no gamble to rent your home with how you described it there are danger signs that I could see and you getting hurt.
0 votes Thank Flag Link Wed Jan 18, 2012
short sale your home but you have to prove a hardship not just the market went down and save for two years and buy another one. But before to do that get in contact with someone in Wells fargo that is the only bank who is lending money after short sale but look for another possiblilties. good luck
0 votes Thank Flag Link Wed Jan 18, 2012
You may be in luck if you are current on your present loan and can refinance with meeting Harp 2 guide lines.
If not than you have several options not one that I would recommend but an attorney could and the decision is left up to you.
0 votes Thank Flag Link Sun Jan 15, 2012
Unfortuneately, you are not alone. Everyone is upside down! (it seems).
Nothing creates solutions faster than acute chronic problems. You situation is both chronic and acute.

As Carol pointed out, this is not a situation most real estate professionals have not faced.
Contact a real estate professional who has good investor networks. The options available for acquiring your new home and resolving your existing ownership will be properly vetted based on your situation and market condition. After all, it is easy to understand that what is 'THE BEST OPTION FOR YOU' depends on your situation, your objectives and your resources.

Best of success in getting into a home where you can open the windows!
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Sun Jan 15, 2012

The best advice for you is to talk to a local lender to find out the choices for your situation. One thought may be for you to rent the home that you are in and buy another home. Another possibility may be for the one how doesn't own a home to buy the new home in their name.

I have worked with buyers that are in the same situation as you and they were able to get financing to buy another home. When the market recovers you can think about selling your present home when you are ready to.

Carol Perdew
Prudential California Realty
(209) 239-7979
DRE 985176
0 votes Thank Flag Link Sat Jan 14, 2012
If you can qualify for a mortgage on the new home while still keeping the current house, I would keep the current house and rent it. You should try to avoid selling in today's market if you can. If you sell now, you will either have to come to closing with substantial cash or try to do a short sale. A short sale would make it very difficult to get a mortgage on the new home. You should first talk to a very qualified lender(let me know if you would like a referral) because most lenders will be reluctant to loan on another home if you are currently under water. They are concerned you will buy the new home and then walk from the current one

Jim Price
Prudential Florida Realty
0 votes Thank Flag Link Sat Jan 14, 2012
Upside ~ Down

We get a lot of questions about Homeowners being Upside-Down on their house.
I will try to cover the field on this topic:
1.) Just being Upside-Down is not sufficient reason for the Bank to do anything for you:
2.) The Bank did not create the Recession and the bank has it’s own problems.
3.) For some RELIEF, you need a dire Financial Hardship to exist; such as you lost your job, or you had a Medical Catastrophe.
4.) If you want to do a Shortsale, you will have to prove to the Bank that they must help you, now or later. Most Banks will not even talk to you if you are CURRENT; so you will have to go past the Point-of-no-Return before they will do anything.
5.) The first step would be to find a Realtor, well versed in Shortsales, who will help you.
6.) This is not as simple as it sounds; many Agents have “sworn off shortsales” because of what is involved in them.
7.) It will make a very big difference if you have ONE LOAN as opposed to having a SECOND. The chances of succeeding in your Shortsale are greatly reduced by having a SECOND loan.
8.) You will have to sit down and compose a letter to your Lender; telling them exactly why you have a hardship and what you plan to do. It is my experience that you have to do this, personally; your Realtor cannot do it, and your Attorney cannot do it for you. You should be OPEN and HONEST, don’t try to B.S: This is about the only thing in the whole process that is PERSONAL. (If you really want to be PERSONAL, do it on a lined pad in your own LEGIBLE handwriting or printing.)
9.) If successful, you now can say (in the Listing) that your Shortsale is pre-approved by your bank.
10.) Now, you can List the house with your Realtor and the MLS. Your Realtor will do a CMA, (Comparative Market Analysis) to determine the Listing Price. The Bank may order a BPO, (Broker Price Opinion) to determine the Listing Price. In many cases, you will be on your own; the Bank will not communicate with you.
11.) If you get an Offer, you will probably “rubber stamp” it and your Realtor will forward it to the Bank.
12.) There is no set time for the Bank to respond; we have heard of three weeks, and we have heard of a year or more. This is not fair, not reasonable, and in fact, it is rude and ridiculous. But it is a fact; so do not get impatient or upset with your Realtor, it is not their fault and they have no control over it. They will gently try to push it along, calling every week or two; but they understand that the person who has that file on their desk, probably has 100 to 300 other files, (they could accidently take a file and move it to the bottom of the pile; things like that have been know to happen.)
13.) You must understand that the Bank is there to make money; they are not a social service organization. It is possible that they believe that they might be able to make more money by letting the property go through Foreclosure. Or, they might believe that next year (or six months from now) the Market will be stronger and they can either COUNTER your offer, or, let it go through Foreclosure.
14.) Now, it is seven months later, and you get a Letter of Acceptance from the Bank: It will probably delineate the terms that they deem acceptable: For example; it may say that the Escrow is to be 45 days, that XYZ is going to be the Title Company, that they are not going to pay for any Inspections, that they will pay a maximum of [$750] for Schedule A(1) repairs due to Pest Inspection, and that if you are not ready to close on time, you will be charged [$50] per day for each and every day.
15.) If you are still in the game, your Buyers will do their Inspections, and set up their Loan. The Bank will order the Appraisal.
16.) Follow your Realtor’s guide and in 45 days, you will be moving.
17.) That would cover a SHORTSALE: But what about a Foreclosure; that would be a separate topic.
18.) You’re not out of the woods yet. If the Bank accepted [$100,000] less than the amount of the loan, they might come after you with a Deficiency Judgment. The list of Non-Recourse States is changing fast. Please consult an Attorney at this point; I am not equipped to answer Legal Questions. But,
19.) I will say that it looks like Deficiency Judgments are like an ice berg sitting out there, waiting for your ship to come along. If you Google “non-recourse states” you can get an idea.
20.) There are still other considerations: Are you behind on your Property Taxes, (if you have IMPOUNDS, you may be? HOA fees? Insurance?
21.) You need to do your Diligence.

Good luck and may God bless
0 votes Thank Flag Link Sat Jan 14, 2012
Before deciding anything, speak to your tax professional and a few real estate attorneys. Walking away from home and letting it foreclose, short selling it, deed in lieu all carry very different consequences.

Good luck!
0 votes Thank Flag Link Sat Jan 14, 2012
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