I want purchase foreclosure and leave my $300G home (20G eqty) behind to live Mortgage free life. Any advice?

Asked by Working Mom, Virginia Beach, VA Sat Feb 28, 2009

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Cindy Jones, Agent, Alexandira, VA
Sun Mar 1, 2009
BEST ANSWER
If I am reading your question correctly you want to buy a foreclosure and walk away from your current home?

This is called considered "buy and bail" by mortgage companies. You must be able to qualify for a new loan showing that you can support two mortgages without any rental income from your current home. If you can not you will not be approved for the loan on the foreclosure. If you have 20G in equity why not attempt to sell first? You may be able to work with a limited service brokerage and at least break even on the sale of your home, keeping your credit intact so that you can move to a less expensive property.

As other agents have said your credit will be ruined for 7 years, the mortgage company could make an attempt to attach a lien to your new home (though doubtful) and certainly you should consult an attorney to see what other issues might arise.

If I have misunderstood your question I would be glad to revise my answer in the future.
Web Reference:  http://cindyjoneshomes.com
2 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 28, 2009
I agree with Keith.

Have your consider selling your home? Leasing home? Lease Purchase?

Appears you can pay cash for a home however a foreclosure can effect your credit for approx. 7 years. If you apply for any type of credit during 7 years either declined or interest rates would be high.

Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
– Lynn A. Crosby
Web Reference:  http://www.lynn911.com
0 votes
Keith Manson-…, , Milwaukee, WI
Sat Feb 28, 2009
You may want to investigate this a little further. People did this back in the 80's in the oil belt. The thing that you have to consider is a couple things when you move you will want to stay in the new property and that the bank you have on the house you live in may go after your for the deficency or short fall between loan an value. Check out the details before you make the jump. Talk to a attorney and review what your bank has done in the past.

Good luck!
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