Posted on: 23rd Feb, 2010 06:36 am
I am trying to purchase a new home (closer to work) and I am running into issues. I will list the issues below and an alternative solution for you to tell me if you think it will work.
Issue 1 – I am upside down by almost $80K so selling the home is obviously out the window.
Issue 2 – This home was included in bankruptcy (CH7) April 2008 and currently shows a $0 balance on the credit reports.
Issue 3 – My Debt to Income is high because of my current home (mortgage $2600). So basically a mortgage broker told me if I did not have the $2600 mortgage payments I could easily get into a new home, but because of the current mortgage payment, my DTI is hosed.
So here is my question.
What if I call the county and change my home from a homestead to rental? I am willing to rent it out but worst case scenario I might have to let it go because I obviously can’t afford two mortgage payments.
Because this house was in bankruptcy and discharged, I really do not have any legal obligations to that property (hence why the credit report shows $0). Yes my name will show on the title search, but do I really need to disclose the $2600 monthly payments if the house was included in CH7?
Gist of it is, I need to find a way to not disclose my $2600 mortgage and I am not sure the best way (if any) to do it.
Issue 1 – I am upside down by almost $80K so selling the home is obviously out the window.
Issue 2 – This home was included in bankruptcy (CH7) April 2008 and currently shows a $0 balance on the credit reports.
Issue 3 – My Debt to Income is high because of my current home (mortgage $2600). So basically a mortgage broker told me if I did not have the $2600 mortgage payments I could easily get into a new home, but because of the current mortgage payment, my DTI is hosed.
So here is my question.
What if I call the county and change my home from a homestead to rental? I am willing to rent it out but worst case scenario I might have to let it go because I obviously can’t afford two mortgage payments.
Because this house was in bankruptcy and discharged, I really do not have any legal obligations to that property (hence why the credit report shows $0). Yes my name will show on the title search, but do I really need to disclose the $2600 monthly payments if the house was included in CH7?
Gist of it is, I need to find a way to not disclose my $2600 mortgage and I am not sure the best way (if any) to do it.
We have a house that we still have a morgage on, we have moved and put the house on the market, we are thinking about renting to own the house out. When we make up the contract to rent to own do we have to disclose that we still have a morgage on our house. I assumed it wasnt the renters right to know that we still have a morgage on it.
Hi miranda,
You may or may not mention about the mortgage in the agreement that you sign with the renters. However, you'll take the help of an attorney to draft the agreement. You can take his opinion in this regard and then take a decision regarding mentioning the mortgage to the renters.
Thanks,
Jerry
You may or may not mention about the mortgage in the agreement that you sign with the renters. However, you'll take the help of an attorney to draft the agreement. You can take his opinion in this regard and then take a decision regarding mentioning the mortgage to the renters.
Thanks,
Jerry
I know that based on posts I've read here through time that it would have been most beneficial for rent-to-owners to know that information. Of course, they can do their own research and find out that information as well. Ought you to tell them? I don't see any real harm in doing so, but I'll side with Jerry in that you ought to engage an attorney to assist you in drafting whatever type of contract you might need here.
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