Re: Want to buy a new Home but can't sell Current House
07-25-2009 08:37 AM
Also, it's quite possible a lender may require you to miss a payment, etc prior to accepting a short sale. On top of that, different loan programs have different waiting periods between completing a short sale and buying a new property. You would need to sell the first house first and allow it to clear on your credit report as paid or they are going to hold you to the mortgage. Once it shows on your report it will show as settled for less than owed. Some, if not most loan programs then will require a waiting period before purchasing between 1-3 years I believe. They will make exceptions for extenuating circumstances such as a job transfer and the like but I don't believe wanting a bigger house qualifies unless you were in a 2 bed condo and just had a couple kids or something.
The other thing is, the lender is likely to want to see your financials prior to approving a short sale. If you have money put away somewhere for the down payment you will need for moving costs and the second home, they are not likely to allow you to settle the debt you owe.