Home Selling in 60403>Question Details

Anngee410, Both Buyer and Seller in 60403

Want to move but don't know what steps to take! Help!!

Asked by Anngee410, 60403 Mon Jun 11, 2012

My husband and I have lived in our townhomehome for 11 years. While I love our home we now have 2 kids and have outgrown it. We need a home with more space and would love a backyard for our kids to play in.
The problem we have is that we still owe about $165,000 and comps in our area are $130,000-$140,000 so selling seems to be unlikely right now. We though of renting out our townhome in the meantime, but I don't even know where to start with that. I called my current lender and they said something about us being unable to rent due to it being an FHA loan.
We are not in a huge hurry to move, but would like to be out of here by the time the boys start school in a few years.
Any advice?

Help the community by answering this question:

Answers

3
Please keep in mind that most lenders will require that you first collect a full year of rental income (from the lease of your current home) before you can claim it as additional source for financing of your second property.
0 votes Thank Flag Link Tue Jun 12, 2012
Anngee

Renting is a very good solution. And you may be able to get another FHA loan. As long as you can qualify for both amounts, that is not an issue. But there are some circumstances when rental amounts can be considered.

Renting your home through a Broker is the best bet to ensure your success. There are no guarantees, but at least we know what to look for and check in a tenant's rental. The only other alternative is coming to the table with money when selling your house. Probably not an option, but worth mentioning.

You can get the best deal ever on what you are going to buy, so this is the best idea. Plus it will alleviate your space needs. Just remember with rental. There always has to be the what if. What if your renter doesn't pay, you will need to ensure you will still be OK to pay both mortgages for a few months. You don't want to run the risk of losing both.

Remember, rules are different in different areas. You have lived in the home a long time. You will need to check, but I have seen several of my clients do this with no problems. Even go to the same lender for the second loan.

Please contact me if you are looking for specific information. I have just had a few clients do this very thing, so I am pretty current on this topic.

Suzanne Hamilton
Managing Broker/Owner
RE Marketing Consultants, Inc.
888-788-9544
suzanne@remarketingconsultants.com
0 votes Thank Flag Link Mon Jun 11, 2012
Note; If you try renting it out, and your Lender finds out, they can (probably) immediately call in the loan, (or some such punishment).

A lot of people have been in your situation over the last three years; there is no easy way out, no soft landing.

The best suggestion I can give; if you afford your monthly vig, stick with it for another year or two:
The consequences of a Shortsale or Foreclosure is probably more than you will lose by paying on a dead horse.

A Shortsale would be second best; talk to your Realtor and the Loss Mitigation department to your Lender.

Good luck and may God bless
0 votes Thank Flag Link Mon Jun 11, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer