Question:

So i want to sell my house for less than i owe and buy another?

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I owe around $80,000 on my home ...but if i sold it i would only get around $60-$65,000 . I found a repo (that needs alot of work) and i could get it for less than than value......can i sell my house and tack on the difference of what i owe to the repo?

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8 ANSWERS


  1. Most likely not - that would put the mortgage value over the value of the repo - lenders do not want you upside down (owing more than the house is worth) especially in this environment.


  2. Simple answer, SHORT SALE.  There are a tremendous amount of people out there looking to work with owners such as yourself to short sale their home.  This would get you out from "under" the negative equity in your home, as long as your home is in good condition.

    If you have good enough credit, then you could always negotiate a price with the bank for the repo property and rent yours if necessary.  You could also get a partner to go in on the repo with you to fix it up and sell it for a profit.

    It is best to leave your personal property out of the thought process of the business of "flipping" houses.  If you are in a negative equity situation with your house, leave it, don't think about that at the moment, and find out how to make money off the market today.  In a couple of years, your house could be worth what you originally paid for it, but you could make thousands, even hundreds of thousands of dollars on other properties if you work it right.  Good luck!

  3. Not going to happen, sorry to say.  These days mortgages are only given out based upon the purchase price of the property involved.  You can no longer take out 'extra money'.

  4. Simply, NO!

  5. While it is possible to get a loan using multiple properties as collateral, its not something you can do while trying to purchase property.  Remember, this isn't a car we're trying to buy.  Your scenario only works if you are refinancing and even then the terms of this type of loan aren't the greatest in the world.

    You might want to think about making your present property a rental  and buy the new property to live in.  OF course we'll have to assume you can qualify for 2 mortgage loans but its an idea.  You'll have to work out the numbers and see if the rental payment will cover your present mortgage payment and expenses.  Another idea is to get the forelcosed property and flip it to make some extra cash to get that mortgage balance down under the value of your present home.

    You probably need to talk to a good real estate agent about a short sale provided you are eligible.

    Good luck.

  6. Imagine you are a lending institution and somebody asked you that question.  Would you loan money to cover a loan on a house they don't even own?  There's no collateral in case the person walks on the fixer-upper.

  7. NOPE.....Mortgages are not like car loans sweetie

  8. No.  You'd be better off staying in your current house (as long as you can make the payments) and waiting for the market to improve.

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