my fiancee and I just put our house up for sale even tho the market is horrible, in az. Its completely re-done with stone floors and new everything...we have only the best in a average neighborhood, so we want to move to a betterneighborhood and a much bigger house. My fiancee put the equity we had in to his buisness.....is that bad? and we are selling it for much more than we owe, but he says we will need to rent a house for awhile, since we dont have the cash to buy a new one?
what are our options? should we just try to get out of our contract and stay till we have the money? i dont want to downgrade because seriously we have the best house on the block and we love it its just too small and the neighborhood sucks,
2006-10-20 09:07:19 · 7 answers · asked by nikel 2 in Home & Garden ➔ Other - Home & Garden
it means that your house is only worth what you owe on it
2006-10-20 12:35:05 · answer #1 · answered by big jack 5 · 1⤊ 0⤋
CONTACT a LAWYER today !!! There seem to be many issues here. Was you mom competent to write the check? Did you wait too long? Was there a theft by deception? Maybe the police should be involved? There may be material defects in the home equity loan. If your mom was not competent, the loan might be void! Something as simple, as you mom not personally appearing before the notary at the time she signed the note might be sufficient to void the loan. Why do you think the bank will foreclose? I assure you they don't really want more properties at this time. Talk to the bank and see if you can assume the debt. How much is the house really worth? Could you sell this week and keep some money? There could be other issues the loan. Lack of proper disclousure, errors in closing documents etc.. YOU NEED A LAWYER NOW !!!
2016-05-22 05:48:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Using the equity in a business is not bad, unless the business is doing very poorly. Getting a business started is costly and a LOT of hard work. If you are selling the house for more than you owe, that is not a bad thing. If you have to rent a house for a year or two before you pay cash for a new one, that is not bad at all. Having a mortgage is not a good thing. The government and lenders want you to think it is, but you are spending thousands to save hunderds of dollars. Not a good trade.
2006-10-20 09:17:03 · answer #3 · answered by SHAWN G 3 · 0⤊ 0⤋
Many people make the mistake of using home equity lines of credit to pay off bills, etc and they get right into the same problem you have. You can't expect the next buyer of your home to pay more than the house is worth because you decided to take advantage and pay off bills! You need to stay where you are and start getting that equity line paid down. If you don't, you will have to bring a large sum of money to the closing table just to break even. Large sum now and move, or stay and slowly pay it down until the housing market gets better? That's the choice you have. The housing market is not good for sellers right now especially seeing how the holidays are right around the corner. Buyers have plenty of homes to choose from and they are going to pass yours buy because you can't afford to give them the deal they are looking for. Hope this makes sense!
2006-10-20 09:13:05 · answer #4 · answered by Paul V 6 · 0⤊ 0⤋
If your selling the house for much more than you owe, then you have equity, if your equity is small, sell it yourself, and don't use a Realtor, save that 7% - if your payment is low, stay where you are and don't rent, get a 30 day clause to surrender the house, then try like hell to find another and close in 30 days.
2006-10-20 09:16:38 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Did he do a home equity loan to pull the money out of the house? Sounds like he did and when you sell your house you will not have any money from the sale for a down payment on a new house. There are many options now to finance your house at high LTV's such as 100% financing which means you will not have to put a down payment for your home purchase.
2006-10-20 09:15:52 · answer #6 · answered by EPIC 2 · 0⤊ 0⤋
the market let you & a lot of other people down, you all thought the equity cash cow would never go dry, well you were wrong, if you can stay there you should at least till the housing market heats up again, then you'll make some money on that property.
2006-10-20 09:12:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋