Home Selling in 78653>Question Details

Sarah, Both Buyer and Seller in Austin, TX

I'm looking to upgrade to a larger home but owe probably $20K than I can sell my current home for. Insead of eating that loss, is it possible to

Asked by Sarah, Austin, TX Wed Sep 30, 2009

roll it into the mortgage on my next home?

Help the community by answering this question:


You cannot roll money you owe on one property into a new loan on a different property.

Please contact your current mortgage lender to see if it is even legal to do a lease purchase of your home to a new buyer. If you are not allowed and proceed with a wrap mortgage or lease purchase and your lender finds out they can call your note to be paid in full immediately and you could lose the house to foreclosure if you can't pay off the note.
0 votes Thank Flag Link Thu Oct 1, 2009
You will not be able to roll this into another mortgage. One suggestion you might look into, is doing a Lease Purchase on your current home, or you could even lease this home until the market picks up and the value of the home goes up.
Best wishes
0 votes Thank Flag Link Wed Sep 30, 2009
You can't roll the $20K into another loan.

The first thing you'll need to know is what the most likely price your home will sell for. Get a quality market analysis of your home so you'll know the true numbers you're working with. If in fact, you're really 20K upside down, you will have few options. Depending on the price range of your home ($100K vs. $400K), you may be able to do some cost effective improvements to give your home greater value without hammering your checkbook. If so, that could reduce your current negative equity situation at least a little. You may also consider selling by owner so commissions won't be factored into the equation, but get some good advice if you choose this route. Finally, you mght consider owner financing for the new buyer. Buyers who are unable to obtain an institutional loan recognize they will have to pay more for a home that is owner financed. Just do a 3 or 5 year balloon note so you can get out of the house when the market turns. Best of luck.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Wed Sep 30, 2009
Can't roll that into a new loan.
I know car dealers do this.... But it cannot be done with a mortgage.

0 votes Thank Flag Link Wed Sep 30, 2009
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