Home Selling in 95843>Question Details

Tim, Both Buyer and Seller in 95843

I have a 1st and 2nd. I can sell my home to cover the first but not all the 2nd.

Asked by Tim, 95843 Wed Oct 15, 2008

Can I transfer the balance of the 2nd when purchasing the other home. The other home has lost value also so what I loose on my home I should make up on the next. The loan total would be less than I owe now.

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No you can not transfer debt for the 1st to the 2nd. The first and the second are the hole, so you are upside down, after you add commissions and title fees you are upside down on the first too. If your income has changed where you can no longer keep your home than you can Short Sale . . Now if you wanted to keep your home you could negotiate with the second to settle with you.
0 votes Thank Flag Link Tue May 28, 2013
Hi Tim: As of October 1, everything is uncertain. We don't know how the "bailout" is going to be interpreted by your current lender. So, in effect, you are a pioneer. Right now, we have to go by trial and error.

If you have sufficient income, you may be able to qualify for your new loan and your current loans on your current home. And your current lender may be willing to negotiate your second if you offer up your new home as collateral for the existing balance on the note. My first question to you is, have you talked with your current lender about this possibility????? That would be the first step. Another hoop to jump through, is would there be enough equity in your new home to support the transfer of the collateral??? I would suggest consulting an attorney and a knowledgeable lender and a real estate agent. You should always have a posse of professionals in matters like this.
Web Reference: http://SoldByErin.net
0 votes Thank Flag Link Wed Oct 15, 2008
First, you don't know what the 'balance' is until you have an executed contract from a buyer on the first home, including both terms and price. You are, as I think you know, in a short sale, situation. That means that you can either come to the closing table with the difference between what you sell the house for, and the loan balance, or you can negotiate an arrangement with your lender. One of those arrangements may be a non-collateralized loan, with various terms for repayment,

That loan is normally not transferred to the new home, as you don't own the new home yet.

A qualified realtor can help you in the negotiation throughout this process. But the first thing to do is to sell your first home, as a short sale if it's as you describe. My experience has been that a lender will not approve a loan on a new home, while your first home in unresolved.

Let me know if you need more details, or have any more questions.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Wed Oct 15, 2008
Tim
The short answer is no, you cannot transfer the balance. However, you might be able to get the second to give you a promissory note.

If you need advice or a referral to a top Realtor in your area let me know.

Good luck.
0 votes Thank Flag Link Wed Oct 15, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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