Want to buy a new Home but can't sell Current House

[Uborrow-Upay]

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@MattH wrote:

Hmm, it sounds like you are stuck, as others have noted you probably cannot buy another house any time soon unless you have equity in this one.  Perhaps you can find creative ways to make better use of the space you have now.

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+1

No further comments, I've learned to stay out of the "wants vs. needs" discussions. (Big round of applause heard here...)

Carry on...

[runNL8]

Thanks for all the suggestions.....I did consider a HELOC, but as already stated by someone else we have no equity built up. We bought our home 6 yrs ago, the market crashed and now I'm upside down by about 30K.

On top of all that I have an ARM that is due to rest in October of this year and then resets every 6mo thereafter.

Luckily for me I am still in a position to afford the payments IF my rate went to the maximum interest rate stated in my loan contract. I don't know if this is true but a friend told me my monthly payments might even come down a little since my reset rate will be determined by current LIBOR rates. Anyone know any truth to this?  

Thanx

[medicgrrl]

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@runNL8 wrote:

Thanks for all the suggestions.....I did consider a HELOC, but as already stated by someone else we have no equity built up. We bought our home 6 yrs ago, the market crashed and now I'm upside down by about 30K.

On top of all that I have an ARM that is due to rest in October of this year and then resets every 6mo thereafter.

Luckily for me I am still in a position to afford the payments IF my rate went to the maximum interest rate stated in my loan contract. I don't know if this is true but a friend told me my monthly payments might even come down a little since my reset rate will be determined by current LIBOR rates. Anyone know any truth to this?  

Thanx

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Very possible your rate could go down.  Based on todays rates, my sisters rate would go from 5.875 to 4%.  Her loan is due to reset in September.  I can't remember if hers is based on LIBOR or the 1 yr TBill.  You would have to look at your Note and see what the margin is and see what the current LIBOR is to determine what it would be today....obviously this will change over the next few months but will at least give you an idea of where you would be sitting if all remains as it is for the next few months.

[Anonymous]

runRN,

Please don't take this the wrong way, but your other option is to stay in your current house, and be thankful that you have a home for your family. Of course you may feel like you have outgrown it, as you had more childrena nd accumulated more things, but does your home keep you warm, and secure? I really don't understand when people keep one house, and buy another one to live in, counting on the rent to cover the first house payment. I live in Ca, and in 2005 I rented a house from a family taht said it was way too small for them, they would never move back into it, but it was their first home, so they didn't want to sell it. I was paying 1500 a month, knowing that was more than their mortgage. Fast forward 2 years to 2007, and I receive a letter in the mail stating that their second house is in foreclosure, and they have to move back into their first house-remember the one that was way too small and they would never move back into. Let's not forget the for sale signs in both of their late model auto's-an suv and a full size truck. Last time I checked, they filed Bankruptcy. When our grandparents were growing up, they didn't have McMansions-they more than likely didnt even have their own bedroom, and undoubtably once they acquired in home bathrooms, they only had one.And they survived. They had all they needed, just not all they wanted. I know this was long winded, but I think a lot of us a lot of the time, myself included confuse needs and wants. Clear out some clutter. Have a garage sale.Wait  until you have more equity in your house, and then sell if you must, but please don't buy another home banking on renters to pay the mortgage. What happens when they don't pay it? What hapens when they move in and destroy your home, because noone takes care of your stuff like you do. What would happen if they turned it into a meth house?Or burned it down? The list is endless, and once it happens it is too late. Just some things to think about. Good Luck!

[adles]

According to me, if you don't need of money than rent out your existing home because property up its market price with the passage of time. If you must want to sell out than go for a good agent or a broker, they known well about properties than us or advertise in TV or newspaper with your demand, you will definitely find out a needy of your home, best of luck.

[marnm022]

We were in a similar situation and were able to get a new mortgage while renting out the home we couldn't sell. We couldn't use the promise of rental income toward qualifying for the new mortgage, but we could take out a new mortgage with a payment that, along with the payment for the rental property and our other debts, kept us in the required DTI. We did need to have 6 months reserves for BOTH properties as well, and I think there was a higher benchmark for our credit scores, but our qualifying score was 770, so no issues there. I was so frustrated when we couldn't sell and had to jump through all these hoops to get a house suitable for our growing family (our old one was my hubby's bachelor pad that he bought at the height of the boom when he was 20). Now I'm thankful because we found a great renter, are able to tuck some extra monthly earnings away (for as much trouble as we had selling, I was AMAZED at the high rental demand), and having to consider the extra mortgage got us approved for a reasonable amount with no temptation to over-spend.

ETA: We had a conventional loan, with a 5% downpayment. There was no requirement for a large down payment on a second home in our case.

[Arhsub112]

Still trying?

It is not a big issue, just hire a good broker or agent nearby you and pay his fee. If you don't want to hire then you can do it by yourself, advertise on social media or ask the peoples around you. 

[pontevecchio]

Replying to a 4 year old post may confuse everyone and not really help.