I need some advice.?

Question

I bought a brand new house for 189,900. dollars. My mortage payment is like almost 1600. a month. Ive been in this new house ONLY for about 7 months,. However, I found a nice cute house with 3 arces of land for only 165,000. my payment monthly would decrease by double like 800. monthly plus I would have my same #rooms and plus land. My question is....what is the best way for me to get this new house. Should I give my house (back) the the bank or should I sell it.???? Please help.

Answer 1

i would get a real estate agent and she how she takes it XD

Answer 2

If your payment is Like 1600 a mo. now, it will not be like 800 a month then. What are you calculating this based upon. It's only 25 Thousand dollars less.
That will in no way drop you payment by half.
Having just purchased 7 mo ago you probably will not be able to sell your current home for enough money to pay the WHOppinG fees of apprx. 7% on the sales price and still have enough to pay your mortgage off.
You can't give the bank the deed, they have to agree to this and they aren't likely to do so anyway since you haven't seasonned the loan. That means you haven't made enough payments on it for them to have made a profit on your loan yet. So, bad plan lady bug!! Just be happy that you were able to buy a home and have one now.
Having land, acreage is very expensive. Just ask people who live on acreage. They'll tell you. You have to keep it free of weeds due to fire hazard if not. You have to do a lot of things when you have land that you can't imagine until you have it.
All in all, don't worry be happy. Live in your current home for another 2 years then you can sell. If the payments are too high, then get a roommate. Can't get a roommate? Work more hours.
Best of luck, I'm sorry to be such a poop. But am just telling you the truth.

Answer 3

You need to sell it. Giving it back to the bank sounds good but it will effect your credit.

Perhaps you can lease the house $2000 to $2500 per month on a lease purchase plan. The new tenants could buy the house in 2 -3 years. With your position as landlord your additional income would make yours credit worth grow.

Caution if you do this use all the money from rent to pay bills on the rental property ONLY. Any left over use it to prepay the mortgage. Hold $2,000 on the side for repairs; they often spring up.

Personally I think you should not change anything because any changes is only courting trouble.

Answer 4

Sell it. You won't be able to get the financing for the new one if you are foreclosed on. Lenders don't like the looks of a foreclosure, it basically says that you aren't willing to follow through with your commitment. It may sound strange but lenders prefer to see a bankruptcy over foreclosure because that shows responsibility.
You should also talk to the Real Estate agent who has the house for sale that you want to buy and see if some deals could be worked out.
The math isn't working for me on the difference in house payment though at only a $24,900 loan amount difference. Yes it would be lower if you are getting a better interest rate but not likely in only a 7 month period because at best you are looking at 6.25%. Remember to keep in mind your taxes and insurance included in that payment.

Answer 5

You should never ever return a property back to the lender unless it is being foreclosed on. It does not reflect well on your credit. You should list the property for sale. If you have the credit rating, and income you may be able to purchase ther other one to prevent it from selling first while you are selling your current property. I would only suggest this if you are in an area that houses are actually selling in a reasonable period of time. Or you can rent one and live in the other.
Good Luck
Tyra

Answer 6

I'll never understand this concept of "giving the house back".

It's not the bank's house to take back! It's your house. You simply have a loan against the home.

You have zero equity in your current home, so if you try to sell, you'll have to come out of pocket for your selling costs, including realtor fees, title, etc...

And I doubt you have more than $200 in your bank account. So that's not really a good option.

And "giving the house back" means you are stepping into foreclosure. So, you'll have zero chance of buying that other home for a few years. So that's not really a good option either.

Next time, think before you buy. If you can't make the payments, don't do it.

Answer 7

You could do several things. You could sell your current house and make the purchase of the new home contingent upon the sale of your current home.

This means that until your current home sells, you aren't liable to buy the new property. But the seller would need to accept those terms.

Or you can rent out your current home and buy the other if you can generate positive cash-flow.

Learn more at http://www.thetruthaboutmortgage.com

Answer 8

Selling it is definately a better option. I am sure your house's value has appreciated, perhaps that way you can walk away without owing them (or having paid the diffrence in interest).

Other important issues that you may want to take into consideration are taxes on the lande, after all it is a lot more correct? maintanence.

If you have taken those and other things into consideration, go for it! and GOOD LUCK!

Answer 9

Giving it back to the bank would make your credit terrible. I suggest you stay at the house you are at. Buying a house isn't like buying a car.

Answer 10

i wouldn't GIVE the house back to the bank... sell your home. Have a contract on the house and land written up with a contingency clause.

Answer 11

Giving the house back to the bank would be a voluntary forclosure and would be on your record as a foreclosure, so selling it would be the best idea for you.