I might sell my home and buy another home. But, I owe $30,000 more than my current home is worth. What is the best thing I should do .?

Asked by Dmwpsu, Orlando, FL Wed Apr 18, 2012

I am thinking about selling my home and buying another homeHowever, I owe about $30,000 more than my current home is worth. What is the best thing I should do if I might sell my current home and buy another home.

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Terri Vellios’ answer
Terri Vellios, Agent, Campbell, CA
Thu Apr 19, 2012
My first question to you is what is your ultimate goal?
What financial resources are available to you? Saviings, Stock?
How is your income and credit?
Can you afford to buy without selling your existing home?
Have you been current on your existing mortgage?
Can you rent out your current home?
Have you talked with you financial / tax advisor?

When you have answered some of these questions, some options will come to light.

No matter what you do, do not make a final decision based on the answers you receive on line because we are not privileged to all the details of your situation and would not be able to give you the advice you need.

Have an Amazing Day!
Web Reference:  http://www.terrivellios.com
0 votes
Mark LeMenag…, Agent, Lake Nona Orlando, FL
Wed Apr 18, 2012
Keep your current home until it is worth what you owe. Sorry, it's not what you want to hear, but it is what you NEED to hear.
1 vote
Marissa Scott, Agent, JACKSONVILLE, FL
Tue Apr 24, 2012
Few of my buyers did the same thing and took advantage of the market. The rental market is hot too especially in Orlando area. I work closely with lenders that can give you some options so let me know if I can help.
0 votes
Jesse Carrie…, Agent, Haines City, FL
Sun Apr 22, 2012
If you want to rent your home and buy another house I recommend that you get pre-approved for the new mortgage before you rent the house. That way you will know if you qualify for a new purchase after leasing your home. As previous agents have mentioned before always speak to your attorney and accountant to get accurate legal and financial advice.

If you need help selling or renting your home I am here to assist your Real Estate needs.

My contact information is listed below:

Best Regards,

Jesse Carriedo
RealtyCity Inc.
Broker Owner
email: RealtyCityinc@gmail.com
0 votes
J, Agent, Greensboro, NC
Fri Apr 20, 2012
Lots of great opinions here.

It reads as though you have more of a "want" situation rather than a "need" situation. The majority of homeowners no matter the location owe more on their homes than current values. Responsible sellers know they may need to pony-up funds in order to get their homes sold and move on to buying other properties. Three viable options that make financial sense may be staying put, rent your place, prepare to pony-up funds at the closing table.

Good luck to you!
0 votes
Kevin and Sh…, Agent, Fayetteville, NC
Thu Apr 19, 2012
The least expensive solution would be to actually lease your home. If you sell, you will certainly come out of pocket at the closing table. Keep your home and use it as a tax deduction for rental property. You should qualify for a new home as long as you have a one year lease agreement signed by a tenant.
0 votes
Alys Esmond, , Orlando, FL
Thu Apr 19, 2012
No bank is going to approve a short sale on your current home because you want to buy another one. If, however, you need to sell your current home because of financial duress (job transfer across the country, for example) you may be able to negotiate forgiveness of the mortgage. Your credit score had better be stellar right now, because the hit the short sale will make will make getting the next mortgage at a good rate very difficult.

If you would like to buy another home because your current home no longer meets your family's needs (too big, too small) why don't you explore renting your current home? Go in an speak to a mortgage broker and see what your options are... if you've got the income and credit score, you could wind up with a tenant covering one mortgage!

Alys Esmond
Century 21 Professional Group, Inc.
0 votes
John Bennett, Agent, Orlando, FL
Wed Apr 18, 2012
Me thinks Mark has it!

What you would need to do as you wish is $30,000 cash to sell your current home plus the cost to sell it (make that another $20,000.

Then you are going to need a downpayment - call that $20,000.

So what you need is about $ 70,000 or more in cash, plus acredit score North of 600.

Do you have $50,000 to $100,000 in cash?
0 votes
Jennifer Bla…, Agent, Basking Ridge, NJ
Wed Apr 18, 2012
I guess the question is "why are you thinking of selling?" If it is because you can't keep up with your current mortgage then you might be in a distress situation and many of the answers below apply. If it's just that you want to move, then you have to consider whether it makes sense to bring the difference to the table because you have to pay off the current mortgage. If you don't have ht e$30,000 then it makes sense to stay put until you are no longer upside down - that will happen one of two ways.....1. the market improves, or 2. you keep paying down principal until the property is worth what you owe.

I hope that helps!

0 votes
Sylvia Paul, Agent, Apopka, FL
Wed Apr 18, 2012
Hi there,
I am a Certified Distressed Property Expert (CDPE) and I can help you with buying and selling, and
can direct you in the foreclosure avoidance options. There are several options available out there, but it is hard for me to say which one is best for you without knowing more about your situation such as your motivation and objectives. Call or email me for a free consultation. Wishing you all the best.
Sylvia Paul
Realty Center
0 votes
Lila Lopez, Agent, South Miami, FL
Wed Apr 18, 2012
Good Afternoon,

There is quite a bit for you to consider in selling your home, especially given as you have stated that you owe about $30,000 more than the home is worth. Depending on your particular circumstances you will want to contact your lender and see what options they may have for you. If you are current on your mortgage and have the financial means to make the payment, it is very unlikly that the bank would approve you for a short sale, however, you may be able to get a mortgage modification. You have not indicated why you would be looking to sell your home and purchase another. That of course is something else that needs to be considered. If you are looking to downsize or lower your payments, you are best served to talk to your lender about your options. Depending on the value of your home, the $30,000 may not be such a big impact and as the real estate market starts to make a comeback, you may find that you are no longer upside down on the property. As has been indicated before you will also want to discuss this with an attorney as well as an accountant to know what you need to be made aware of depending on your particular financial situation.
0 votes
Camille Ruiz, Agent, Clermont, FL
Wed Apr 18, 2012

The ideal situation is that you have the availability of funds to pay the difference from what you owe on the house and what the sales price is plus the costs of selling the home. By doing this, then you should have no problem in purchasing the new home.

If this is not possible, I would suggest you speak to an attorney so they can advise you of your alternatives and what effect will have on your credit. I have used 2 great attorneys and they do not charge you for a consultation; send me an email and I can send you their information.

It it was me (and again I am not a lawyer), and I have had several customers do the same, I would buy the new house and then work on a short sale/modification with the lender.

If you would like my assistance to accomplish both (buy & sell). one, or just to talk more in detail, please do not hesitate to contact me. I am available via email @ camilleruiz@watsonrealtycorp.com; phone or text @ 407-929-4632. We could even skype.

I hope this information helps you a little bit.


Camille Ruiz,
Realtor, Watson Realty Copr
Short Sale & Foreclosure Resource
0 votes
Mike Sperling, Agent, Winter Park, FL
Wed Apr 18, 2012
Hello Homeowner,
You have a couple options. One is the short sale but, you will not be able to buy another home for two years. The other can take a while and you will still need cash, down payment. for your next home purchase. A lot of it depends on your circumstances. Have you talked to your bank yet to see what they are willing to do?
0 votes
April Rager, Agent, Clermont, FL
Wed Apr 18, 2012
If you have the $ to pay the difference, that's great. If you have to short sale, then you may have a few issues trying to buy the other home. If you are paying cash, that's one thing. If you are financing, that could be a problem-qualifying for 2 mortgages. Then of course, the lender of your current home could pull your credit to see if you have made any major purchases prior to the short sale application.

If you can pay the difference that you owe at closing for the current mortgage- that's the best thing!! Then you can move forward with no problems or issues. : )

Hope that helps.
0 votes
Alexander Gr…, Agent, Winter Park, FL
Wed Apr 18, 2012
Hi there;

Unfortunately, a Short Sale would be in order.
Buying another home would greatly depend on how much cash you have available.
However, there are good programs available to give you "cash for keys" if you do a short sale.

There is also another program available besides a short sale that I can give you details about.

Call me any time at 407-929-9674

Thank you.

Have a great evening,

0 votes
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