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Caught in Downturn |
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My husband and I would love to buy a bigger house for our growing family. Due to the decline in prices for homes in our area, this is a really good time to buy. Unfortunately, the current home we own, we owe more money on the house than we can sell it for. Ideas that have been given to us are buying the new property and letting our current property foreclose. We have also been told we can try to sell the home for less than what we owe and carry the rest of the amount on a "note". We have also heard the term "short sale". What options do we have in our unique situation and what would you recommend?
Thank your for any help,
Patricia |
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With a short sale, the bank agrees to accept whatever you can get selling your house and forgive the rest of the debt. They won't usually agree to do that unless you're just about destitute.
It's hard to see how you can get a mortgage on your new house while you're still paying on the old one, and once you have a foreclosure I doubt if you'd be able to get a new mortgage for many many years. It's worse than a bankruptcy on your credit record, from a mortgage lender's point of view.
As for carrying the rest on a note, I have no idea what that means.
Mostly, all I offer you is sympathy. You got caught in a bad situation.
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Edith
Originally published on November 11, 2007 |
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