Yes. You should purchase the new home first, if you can get a loan. Then short sale the house you are living in. Your credit will take a hit, but it will bounce back rather quickly.
Usually, after a short sale, a person can buy a new house in two years. So, if you can't afford to buy now, you should sell the house you are living in, and move into a rental. Time is on your side. The market is still declining. So, after renting inexpensively for two years, you can use the money you saved to buy a less expensive home. I know it sounds inconvenient to move twice, but it will be a great way to get out from under your debt and get a fresh start.
Several of our past short sale clients look to buy new property two years after their closing. They have saved money, got a better job and have their life in order. They tell us that the short sale was the best thing they ever did.
Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states... more
Hi, I would say consult an attorney for legal advise, you may be able to take them to small claims. From the Real Estate side, I would look for new tenants. Obviously those people are not the ones for you. It couldn't be more difficult finding new people as it is trying to get these to abide by the contract from what you are telling us. Best of luck!... more