Currently 15-20% underwater, want to sell and upgrade to bigger house. How is this possible?

Asked by Mmlevier, 21701 Mon Mar 15, 2010

Can afford current home and can afford more so we're looking into another place, but are 18% underwater on current home. All payments current and even a little ahead. How is it possible to roll the negative equity to a new home loan?

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Jennifer Coa…, Agent, Frederick, MD
Fri Nov 22, 2013
The market has changed since this question was posted. Many of my recent buyers understand that when they take a loss on there sale, they will get a better savings in there move up. Hopefully that is the case for you.

Jennifer Wang, REALTOR®, Buyer Specialist
The Landmark Group at Real Estate Teams, LLC
0 votes
Cathy Chapman, Agent, Frederick, MD
Wed Feb 27, 2013
This question is almost 3 years old. :-) Hopefully this person found a solution at that time.

Cathy Chapman, Broker Owner Agent
Signature Home Sales
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Cassandra Ba…, Agent, Frederick, MD
Wed Feb 27, 2013
Do you have money saved for your purchase? I've had many clients use the money that they've saved (or 401K savings) for the purchase of their new home to pay the difference owed at the sale of their current home. Then they get that money back by a closing cost contribution from the seller of the new home. In the end it's a wash!
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Miekeba Jones, Agent, Silver Spring, MD
Sat Feb 23, 2013
Hi Mmievier, consult a mortgage lender.
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Elizabeth Re…, Agent, Hagerstown, MD
Thu Jan 17, 2013
Where did you find your statistic on what your home is worth? Did you already meet with a realtor? If you haven't I would start there, it is helpful to find out what the market is currently trending. In Frederick County the inventory being limited has offered a shift in the market from a Buyers market to a sellers market in places. There are some ways that you may be able to move forward. However your suggestion of rolling over, like you can in a car loan, is not applicable to real estate. Lets start with finding out what the market says you home is worth and discuss options from there.
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Gerard Dunn, Agent, Chevy Chase, MD
Tue Mar 16, 2010
Negative Equity? Hmmm...

You have the option of renting out your current home and purchasing a new one if you qualify.

Why not touch base with a mortgage banker to determine your options?

Good Luck!
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Patty Smith, Agent, Frederick, MD
Tue Mar 16, 2010
Goor Morning:

As you see from the other answers, it's not possible to roll your negative into another home. The market has heated up some in Frederick and it depends on what location you are you might be able to get a little more now then you think. It really depnds on the ocndition of your home, location, etc. It is possible for your to rent your home out as the rental market is extremly hot right now. Give me a call and we can discuss further. 240-876-3424.

Thank you, Patty Smth
Team Gardiner
Long & Foster Real Estate
Frederick, MD
Mount Airy, MD
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Keith Sorem, Agent, Glendale, CA
Mon Mar 15, 2010
The short answer is sure, you just need to make up the difference (bring money to closing).

Otherwise, like most Americans, you'll just have to tough it out.
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Tina Beasley, Agent, Saint Augustine, FL
Mon Mar 15, 2010
You cannot "roll" negative equity into another home. You just need to either rent your current home to another person and if you have money in the bank to purchase another home and your credit is good and your income qualifies you to do so can. You need at least 3.5% down payment for an FHA loan to purchase a new home. You can get seller contribution to pay your closing costs on the new purchase in some instances. You just have to find a home with a seller who is eager to sell and is willing to pay your closing costs. The question is, do you have this kind of money to do this? Think long and hard before you get yourself into a serious financial bind as you cannot always count on renters to pay the rent and if you need that money to pay for your current could really cause you some serious financial stress and credit issues. Be careful!
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Guy Gimenez, Agent, Austin, TX
Mon Mar 15, 2010
You can't roll your negative equity into another home....not the way it works. One possibility is this.

If you can qualify for your current home and your new home, then you can purchase the new home and lease out the current home until the market returns. This is dangerous proposition and I wouldn't recommend it for obvious reasons, but it is possible in some instances.
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Fred Glick, Agent, Mountain View, CA
Mon Mar 15, 2010
It's not, sorry.

You may have some options.

You can rent the current place as long as the new mortgage qualifies you with your current payments plus the new one.

You can rent your current place and then move to somewhere that you rent instead of buy.

You can find a Seller that will do the financing instead of a bank (hard to find).

It's not easy, but with the right mortgage person and real estate agent, it might be possible.

Good luck!
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