Foreclosure in San Diego>Question Details

Jmacias, Both Buyer and Seller in San Diego, CA

Does anyone know about purchasing a home before letting your first forclose?

Asked by Jmacias, San Diego, CA Wed Oct 31, 2007

I am in a bad loan & upside down in my condo. The value has dropped so much. There are many in my neighborhood for sale, I think it would be hard to do shortsale. My bank wont refinance cause there is no equity. Ive been told by realtor that I can buy another home then let my condo go into forclosure. Im already aware of possible consequences but want any advise out there about this situation.

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Your Realtor has unfortunately misinformed you. If you are already upside down on your current mortgage, you will not qualify for a new loan to buy another property.

Please call your lender TODAY and explain your situation to them. They may be willing to work with you on payments so that you do not have to foreclose. Honestly, a foreclosure, though sometimes inevitable, has a horrific impact on your credit. See if there is anything you can do to avoid one.

Perhaps the bank would be willing to work out a short sale situation with you; at least try the market and see what you would be able sell for. It might be worth a shot if you can prove you are unable to make your payments any longer and are able to find a buyer willing to pay enough to cover a portion of your loan.

But definitely, DEFINITELY, do not even attempt to get yourself into another financial commitment until you have resolved this one.
2 votes Thank Flag Link Wed Oct 31, 2007
I am horrified that you received advice to let your condo go into foreclosure. If that agent told you to jump off a bridge, would you do that too? I think you can see from the four of us that we do not think this is good advice.
Talk to another couple of Realtors, financial advisers, and mortgage brokers. And call your bank again and explain your situation.
Good luck,
Ruth
1 vote Thank Flag Link Thu Nov 1, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Yes you can purchase if the bank who is giving you a loan states you can. Is it ethical well that is a whole different question.
0 votes Thank Flag Link Wed Nov 7, 2007
Jmacias,

You haven't mentioned whether or not you are behind on your mortgage. Not sure what your motivation is for wanting out right now unless that is the case, but for a short sale to be even an option, you would need to show DRASTIC financial health before the bank would even consider it. (A True Hardship is needed)

It has been made public that there will be assistance given to those w/ ARM mortgages that are due to "step-up", so if that is the case you are or will be in soon, then you may want to contact a Supervisor at your bank and request this.

Unfortunately, when you are dealing w/ LARGE banks, it's extremely hard to get your case across to "customer service" as they are trained to only handle basic requirements. You will need to push for a supervisor who has the ability and the expertise to see what other workable situations you may have.

As for your Realtor... if they are brandishing that kind of advice openly and half-hazardly... they may do them self a favor and let their license expire because they aren't providing much of a fiduciary to you.... that is unless your realtor is also an attorney and mortgage officer?
Web Reference: http://www.jmbsa.com
0 votes Thank Flag Link Thu Nov 1, 2007
Although you theoretically can buy a new home, and rent out your condo. I dont think this would be helping your situation. If your not late on payments and still have maintained your credit, you will not qualify for a short sale, unless you can show hardship. You can call your lender, and ask them to consider a mortgage adjustment if your loan is about to adjust. Countrywide recently announced they will help 16 billion dollars worth of loans refinance or adjust there loans.

Do you have money down for a new house, or are you talking about going into a 100% financing home. Make sure you think clearly about your options. Get advice from another if this realtor is not willing to run through all your options.
0 votes Thank Flag Link Thu Nov 1, 2007
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