09-19-2012 11:16 AM
Greeting: I need some advise please, we bought a town house in 2008 for $303k as of today its worth $170k. We got modification and currently monthly payment is $1700, we would like to buy another house in three years when our son starts middle school as the current area does not have good school for middle school and high school.
I really want to look at our situation from a different perspective and hoping that you will be able to advise on possible route to take, currently our house is worth $170k and our mortgage is $303k we would like to either sell the house and go and rent somewhere or stay in our property for another three years and hoping that we can buy another house in a good area by the time our son start middle school. The house doesnt have equity at all so my question should we sell now and go and rent, stay in our house, or rent our house and buy somewhere else.
09-19-2012 11:42 AM
I feel for you that you are in this situation as you have some tough decisions ahead of you. Selling would be an option but it would be a short sale unless you have an extra 130K layng around. If you short sale your credit will be dinged and you may have a tough time getting a loan. But then again you said you were OK with renting for a while. If it were me I would view this as only having 2 options which is either stay put or rent it. If you are set on moving to another area for schools I would suggest looking at the renting of your property sooner rather than later. This way you can rent another place for yourself for a couple of years and then you will likely be able to buy a second home with verification of the house being rented out.
Good luck to you!
09-19-2012 11:52 AM
Thank you indecison, I wasnt aware that I would need verification that the house has been rented for longer period, renting it is!!
09-19-2012 12:02 PM
Im not sure how all loan programs work but if you are going to carry 2 motgages I have seen some folks on here post they have had to have proof that the house is and has been rented. This probably also depends on your income as well I am sure. If you have the DTI to cover 2 then maybe it would not be a problem. Im no expert on this stuff though by any means.
09-19-2012 12:07 PM
Thank you so much, I will look for previous post regarding carrying 2 mortgage, i think it might be best to rent out and rent ours, if it means we reduce our DTI ratio and our current primary be seen as rental income
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.