If you haven't already, the first thing you need to do, is run the comps in your neighborhood and surrounding area to see what similar homes are selling for.
You may be pleasantly suprised to know that you may not be underwater. Prices have been escalating at a decent rate since inventory is low and demand is high. The only way you would qualify for a new home is if you could afford both.
Email me your home address if you would like and I will run the comps for you and see what I think. My contact information is listed below.
Real Estate One
If your current home proves to be "underwater" and traditional lenders will not approve you for a second mortgage to purchase another house, then you would need to sell your current house on a short sale. But, in most cases, a traditional lender will not finance you for 3 years after a short sale.
Your next option would be to work with an untraditional lender you would either finance you for your new home purchase before you short sale your house, or would finance you immediately after your short sale is complete.
I have just such a lender. They are local and they have lots of money to lend and have financed clients for me after a short sale that other lenders would not touch. If you would like to find out more, contact me by email or a phone call. My number is 248-930-0198.
Kathy Persha, Broker
GRI, CDPE, SFR, CIAS
Nextage Advanced Realty
There is more than one answer to your question. Let me explain your options, as I'm the 1% of Realtors who have there Masters in Short Sale Certification as a Master Default Intermediary.
We are the experts in Short Sales in Michigan and we have helped many people get out from under their underwater homes. You need an experienced Realtor to guide you throughout the process, as this is what the lenders require.
Call or stop in to talk to one of our Short Sale consultants to weigh out your options, it's FREE and it will give you a piece of mind, as to what your next step should be. Everything we talk about is confidential.
My contact information is below, so feel free to call, text or email me as soon as you can and we can help you.
Keller Williams Realty
Can you qualify for both mortgages? If not, you can consider selling your current home short sale if necessary. You may qualify for an exemption due to job transfer in purchasing another home. I would do as Haig said and contact an area agent to get a current market analysis to determine if and how much you are underwater. I would also recommend speaking with a loan officer to determine your options in purchasing a new home or if you'll need to wait to purchase.
If you need the assistance of an area agent I would be happy to assist. I've practiced real estate and currently live in Warren. I was also the former City of Warren Realtor.
Karen Paytas, GRI, CMS
Real Living Kee Realty