I recently bought a new house and I am living in that house. I bought the new house before selling the old house. I know, a mistake!! The old house won't sell!! It has been on the market for more than 60 days with no offers. I can't afford to keep paying two mortgages. The old house has a first and second mortgage. I don't know what to do. I can't rent it for as much as the payments are and I'm draining my savings paying mostly interest. If I have to let it go and the bank forecloses what happens to my new house and my other assets?
2006-09-27 12:33:46 · 10 answers · asked by jn 1 in Business & Finance ➔ Renting & Real Estate
If it doesn't sell, then rent/lease it out. Charge enough rent so you can pay the mortgage on that house and maybe even have some extra left over. Leasing can be a great long term money maker.
2006-09-27 12:36:57 · answer #1 · answered by Rawrrrr 6 · 0⤊ 0⤋
Not sure if this would help. Usually, a housing market correction last for years. It is unlikely things will brighten up in a few months, afterall, this bubble took 5 years for form.
It might be better to give some discount so you unload the house quickly and can use the gain of the home to make money elsewhere quickly. At the same time, you will save money by not paying mortgage for the next 5 months.
For example, if mortgage is $2500/mo. and you have $300,000 gain sitting in the house, by selling it now rather than 5 months later will save you $12500. It will also earn you as much as $7000 from interests (Assuming CD are paying 5.5% or higher).
Total financial benefit for selling early would be $20,000. I would give buyer some discount just because of that.
Finally, keeping a house in selling condition is a lot of work. If your realtor does staging, it costs extra to rent furnitures. If you are living in the unit, it takes extra effort to keep it clean. So, sell it fast!
http://money.cnn.com/2006/09/25/news/economy/homesales2/index.htm?postversion=2006092513
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
2006-09-27 21:01:10 · answer #2 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
You are in a tough position.
So your best bet is to try selling the new house. If you got a good deal you might to be able to sell it for the amount you paid + the closing costs.
If that does not work, dramatically reduce the price of the old house. (Sell it for just enough to cover your costs, the loans and closing costs). Once you've reduced the price, market it aggressively.
Your final recourse is contact a leasing company. They might be able to take over the property and lease it out for you. This is an expensive option but it will at least cover some of the burden of the old house mortgage.
2006-09-27 12:47:32 · answer #3 · answered by juliazumba 2 · 0⤊ 0⤋
Well if your old house doesn't sell at the price on it now, you may have to lower the price more. You may have a loss that you will have to get a loan on to actually dispose of the old house. With the overpriced housing market, I think many people will be in bad shape if they have to sell when the market starts heading down. Good luck, bad situation...
2006-09-27 12:53:21 · answer #4 · answered by mary sparks 1 · 0⤊ 0⤋
The bank that forecloses on your previous residence cannot do anything to you or your new property, but why dont you refinance it for a lower payment then put it back on the market as a rental? Or do you need the equity in it?
2006-09-27 13:00:50 · answer #5 · answered by JAMIE M 2 · 0⤊ 0⤋
I help people in this situation on a daily basis.Your best bet is to talk to your lenders to tell them your situation and see ifthey can restructure your note, add your payments to the back of the loan or change your loan program to buy you some time and ease your financial burden. Then you should change your agent to one that can act quickly or is well versed in something called a "short sale".
If you're in Southern California, I can help you out. Contact me.
Regards
2006-09-27 14:28:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Well you will first off ruin your credit. secondly if you owe more money than what the bank says you have paid in value of the old home, well they could cast a lien on your new home.... your best bet is to try to sell it, why won't it sell? ASking too much? Can you do "fix-up" work to make it more appealing?
Hope it works out for you.
link.20fr.com
2006-09-27 12:39:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Where is the house at? i'm actually looking for a house right now. Also the pannysaver is like the BEST place to put anything you want to sell. It's free also. http:www.Pennysaverusa.com
2006-09-27 12:36:44 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Try a lease/purchase plan for your old house. Or try renting it with option to buy. Or try a new realtor.'
2006-09-27 12:41:25 · answer #9 · answered by Bluealt 7 · 0⤊ 0⤋
donate to a homeless family
2006-09-27 12:41:57 · answer #10 · answered by thought 4 · 0⤊ 0⤋