Posted on: 03rd Dec, 2007 06:21 pm
Posted: Mon Dec 03, 2007 7:16 pm Post subject: mortgage problems :roll:
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My problem is we currently own 2 house one is our primary which has two loans and one is rental. At the same time we also are having a new house being built and will be ready in feb. 08. We are trying to sell the primary but no one is buying. We wanted to know what our options will be if the primary does not sell and we are living in the new house. We are unable to afford two mortgages. Please help.
:roll:
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My problem is we currently own 2 house one is our primary which has two loans and one is rental. At the same time we also are having a new house being built and will be ready in feb. 08. We are trying to sell the primary but no one is buying. We wanted to know what our options will be if the primary does not sell and we are living in the new house. We are unable to afford two mortgages. Please help.
:roll:
Hi Guyana,
It is a scary situation to be in, but you have more options than you realize...Here are some ideas for you...
Do you have room to lower the selling price on your current primary? There are two primary reasons a house won't sell...either it is over priced, or not being marketed effectively.
If you have to take a loss to move it...you could incorporate the shortage into another property, in the form of refinancing. (if you have enough equity to do it.)
Have you considered renting you current primary...you already have experience as a landlord...this is an excellent option. Even if you can't totally cover the payment, it's better than eating the whole thing. Also, this strategy would offer the time necessary for the market to rebound so you won't have to sell for a loss. You'll just have to do the math an see if this is an option.
Kim
It is a scary situation to be in, but you have more options than you realize...Here are some ideas for you...
Do you have room to lower the selling price on your current primary? There are two primary reasons a house won't sell...either it is over priced, or not being marketed effectively.
If you have to take a loss to move it...you could incorporate the shortage into another property, in the form of refinancing. (if you have enough equity to do it.)
Have you considered renting you current primary...you already have experience as a landlord...this is an excellent option. Even if you can't totally cover the payment, it's better than eating the whole thing. Also, this strategy would offer the time necessary for the market to rebound so you won't have to sell for a loss. You'll just have to do the math an see if this is an option.
Kim
Hello Guyana,
Kim has offered a wise solution.
You may put up your primary house on rent with a lease-to-purchase option. The rent that you receive will help you to make the monthly mortgage payments and the tenant buys your house at the end of the lease term, usually 2-3 years.
Kim has offered a wise solution.
You may put up your primary house on rent with a lease-to-purchase option. The rent that you receive will help you to make the monthly mortgage payments and the tenant buys your house at the end of the lease term, usually 2-3 years.
Kim has given some very good advice along with jenkins. You simply have to do the math and what figure out which will be the best solution is and what you are willing to compromise. Have you gotten any offers. Aot of people are offering creative incentives to new home buyers to help sell their home quicker.
Things like paying for 1 year of insurance for the buyer helps reduce their out of pocket and upfront purchases costs and creates more value while allowing you not to loose 5k in the purchase price to make up for them having to come up with an extra $500 out of pocket to pay for their first year of insurance.
I will elaborate so it does not seem confusing. If the home price is 100k and they are getting 95% LTV and the the borrower is going to have say 6% in closing costs. so they will need 11k to bring to closing. say the insurance is 500 of that 11k they need., but they only have 5k and want you to offer 6% seller concesion. so you raise the sale price to 106k now they need so they get a loan for $100700 minus your eller concesions of 6% and that cover the sale price leaving the still needing to bring 5300 to closing for costs. you offer to pay that 500 out of your pocket so they need to bring 4800 to closing and can purchase the house. Otherwise you would have to drop the sale price by 5k to get them to be under 5k in total costs to be able to purchase the home. they get more value out ofthe insurance being paid by being ableto purchase home and you save 4500 dollarsby not loosing a potential buyer. there areother value add things like this that you could do to help your buyers with closing costs.
Like kim said make sure your home is being marketed properly.
Things like paying for 1 year of insurance for the buyer helps reduce their out of pocket and upfront purchases costs and creates more value while allowing you not to loose 5k in the purchase price to make up for them having to come up with an extra $500 out of pocket to pay for their first year of insurance.
I will elaborate so it does not seem confusing. If the home price is 100k and they are getting 95% LTV and the the borrower is going to have say 6% in closing costs. so they will need 11k to bring to closing. say the insurance is 500 of that 11k they need., but they only have 5k and want you to offer 6% seller concesion. so you raise the sale price to 106k now they need so they get a loan for $100700 minus your eller concesions of 6% and that cover the sale price leaving the still needing to bring 5300 to closing for costs. you offer to pay that 500 out of your pocket so they need to bring 4800 to closing and can purchase the house. Otherwise you would have to drop the sale price by 5k to get them to be under 5k in total costs to be able to purchase the home. they get more value out ofthe insurance being paid by being ableto purchase home and you save 4500 dollarsby not loosing a potential buyer. there areother value add things like this that you could do to help your buyers with closing costs.
Like kim said make sure your home is being marketed properly.
You can look at a bridge loan that will offer no payments for 6 months or until the home sells at "http://www.mortgagelenders.us.com/bridge_loan.htm"
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