We bought a house a year ago this month..now we need to relocate as well as downsize due to changes in job location (same company just differant site) and some credit issues that caused us to get behind in our current mortage.
We are looking to get out of this house and into a cheaper one so that we can one relocate and two clean up our credit issues.
2006-11-03 13:39:17 · 8 answers · asked by sherrys_junk_mail 1 in Business & Finance ➔ Renting & Real Estate
Consider this alternative which is a three step procedure.
It is absolutely normal for a couple to sell one house and consider this option.
Step 1 : Sell the house. Get whatever you can after you've paid off your mortgage. If you're thinking there isn't going to be any left for keeps, don't sweat it. Just settle this 'giant problem' first.
Step 2 : This is the simpler part. Since it is apparent that it is generally easier to buy than to sell, you might consider lease-purchase option. Which means, when you move to your new location, it may not be a purchase straight away. Later if you decide this new home is really for you, then you can exercise your option to purchase by entering into a Sales & Purchase Agreement.
Step 3 : If you decide NOT to buy, then your lease, maybe 5 years can be made into a very comfortable setting, the money which most people use up paying for mortgage facilities can be channeled into having all the gadgets you require to enjoy a refined quality of life.
Optional Step 4 : While you're enjoying Step 3, Save your money within these 5 years and invest in a smaller house, not for you stay in yourself, but to rent it and sell it for profits. Try not to take a loan. Invest in smaller a property because you can re-sell it faster. The idea is to have best of both worlds: one way you refine your lifestyle as in Step 3, and the other to purchase/invest into something which will snowball in value, without having to pay for mortgage services that eat into your savings.
The above is is truly the easy way, taken into consideration all the mistakes I have made in properties and, learning from them.
2006-11-03 20:43:53 · answer #1 · answered by catcher 3 · 0⤊ 0⤋
It's easy, or difficult, depending on the location. Start by getting an estimate of what your house is now worth: see zillow.com, and talk to a local realtor. Next, research houses in the new area, and see what they go for; use realtor.com to look at listings. Next, go to your bank (which ideally will have branches in both areas) and discuss all of this, with reference to getting a mortgage on a new property. Finally, run the numbers to do a sanity check on the whole project, looking toward using some of the old house equity to pay off the old bills and some for a down payment on the new house. After all of this foofaraw, you will have a pretty good idea of what you can do. A previous responder suggests taking out a new mortgage or equity loan; this would be a serious mistake, as it will cost money to hang the new paper on the house, and you won't get it back when you sell.
2006-11-03 21:51:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
One thing banks don't want to do is "belly-up" on a mortgage. So, if you are wanting to get out of your mortgage, but cannot sell your house, you have a couple options. Since you only had your house for a year, it's unlikely you have any equity built up. Depending on how the market is doing, you might be lucky to sell it for what you owe. If you are having a tough time at selling, and it is time to move, ask the bank about a "quick sale". That means the Realtor will sell the house for whatever they can get that's close to what's owed to the bank. Let's say you owe the bank $120,000 on the balance of your mortgage, and the buyers offer $110,000. It's then up to the bank...they would rather take the $110,000 and let you out of the mortgage and just sell it out right, rather than if you were to go bankrupt or just split.
2006-11-03 21:46:30 · answer #3 · answered by LARGE MARGE 5 · 0⤊ 0⤋
Sherry,
If you are relocating to another state for work, your company has to help you out. They need to pay for your move, at the very least, put you up in temporary housing, and offer you something for your closing/buying.
This is regardless of your credit.
Talk to HR about their relocation packages.
I have moved a LOT for work.
2006-11-03 21:45:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You might end up owing capital gains taxes if you sell your house before you have owned it for 2 years. There are some exceptions you might qualify for, especially since you mention that you "need to relocate". You may want to consult a CPA or tax attorney before you make your decision.
2006-11-04 00:00:23 · answer #5 · answered by Angel 2 · 0⤊ 0⤋
you have to sell your house for more money than you owe the bank
then whatever is left over is yours
you will also probably have to pay a penalty on top of what's owing for paying the mortgage off early
2006-11-04 02:15:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
best way is to refinance your house if that cant be done then sell or get a private lender u should b able to sell the home if it comes to that
hope i helped u good luck
2006-11-03 21:46:15 · answer #7 · answered by Jonny 2 · 0⤊ 0⤋
downgrade to a townhouse or single family home
2006-11-03 21:40:50 · answer #8 · answered by andykpln 4 · 0⤊ 0⤋