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08-01-2009, 06:37 AM
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3,756 posts, read 8,715,401 times
Reputation: 1072
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If they can do it on paper and it's for short time what would be the downside??? There might be mitigating issues with the old home. Maybe one the mortgages get combined, the old house can be reduced???
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08-03-2009, 02:58 PM
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4,990 posts, read 12,718,186 times
Reputation: 3816
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Quote:
Originally Posted by Arobin
I believe the last number was 5% down. With the equity in the old home and the required 5% down on the new home we were short $12,000. This was even with help from the seller. He's down to his lowest offer.
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It sounds like you are not in a strong enough equity position to be going into a deal like this. Bridge loan type deals would typically require you to have 30% or more equity in your current home (preferably more). |
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08-03-2009, 03:06 PM
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4,990 posts, read 12,718,186 times
Reputation: 3816
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Quote:
Originally Posted by BLUEDIAMOND64
If they can do it on paper and it's for short time what would be the downside??? There might be mitigating issues with the old home. Maybe one the mortgages get combined, the old house can be reduced???
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The biggest downside is carrying 2 mortgage payments, 2 homeonwer's insurance policies, paying 2x the real estate taxes and incurring extra utility bills for a completely uncertain amount of time. It is a real easy road to going broke. |
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08-03-2009, 03:39 PM
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Location: Phoenix,AZ
7,204 posts, read 12,571,268 times
Reputation: 6519
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Been there, done that.
We bought a beautiful home real cheap, and decided to rent out our condo until we reached some kind of equilibrium with what we owe vs. what we could sell it for.
It's been a nightmare.
Not worth it.
Never again.
If things don't improve in the next 4 weeks, we're toast. Bad mistake.
Real bad.
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08-03-2009, 05:44 PM
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Location: NYC
15,938 posts, read 23,762,795 times
Reputation: 24434
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Don't do it. You don't have the money, the housing market is sh*t, and what if something happens to you or your spouse? There isn't a house on this earth that is worth spreading yourself that thin.
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08-03-2009, 06:04 PM
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28,461 posts, read 76,450,676 times
Reputation: 18552
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When the market was RED HOT it was still very risky to carry two properties with little equity, now it is MADNESS.
If you have had HUGE equity in at least one place I might feel a little different, but with the kind of equity and cash that you simply do not have it would be highly irresponsible for anyone to not warn you that you are risking too much.
If the sellers of the "dream home" will NOT except a contingent offer (based on sale of your home) you have to just face reality that you need to keep shopping. My gut tells me that the sellers might be more inclined to accept that contingency if you make a strong case that your home will sell soon and you are the best buyer for their home. That is often easier to pull off that you think...
Good Luck!
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