Posted on: 25th Oct, 2009 07:27 am
I want to sell my home and purchase another home, but I will take a loss on selling my home. ie: value of my home is 120K and I sell for 85K (35K loss). My current mortage payments is $900.00 per month. The new home I want to purchase is 180K. How can I purchase the new home and what problems should I look for in buying this new home? Realtor wants me to Short Sell my home and then buy the new home even with the loss of 35K upon selling my home. How does this work? Is it better for me to try to go through my Credit Union or my Curent Lender to buy the new home? I don't want to have any unforeseen problems. What do you think and how should I manage this?
Hi pyoung,
If you short sale your property, then your credit score would go down by 80-100 points. Also, you won't be able to get a loan for 2-3 years. If you apply for a loan, you may have to pay a higher interest rate. You may try to purchase the new property first and then short sale the old one.
If you short sale your property, then your credit score would go down by 80-100 points. Also, you won't be able to get a loan for 2-3 years. If you apply for a loan, you may have to pay a higher interest rate. You may try to purchase the new property first and then short sale the old one.