Let me try to explain exactly what I’m trying to accomplish. My current home is on the market, it was rezoned last year from residential to commercial and is on the market with three other properties. I made the mistake that I preach at my buyer clients about all of the time - don’t look for your next house until we have a deal working on your current house. In any case, I’ve found the property that I really want to buy. I’m not sure if there is a loan that can make this happen or not. I owe approximately $114,000 on my current house and the property I wish to purchase is on the market for $340,000. I feel very confident that we could buy that property for less than the $340,000 they are asking. It has been on the market for over a year and it is a foreclosure property. That property was sold for over $400,000 in 2006 and should probably appraise at about $410,000-420,000. I can document (w-2) $92,000 annual income. I was of course counting on selling my house before buying a new one, so my other debt that would have been paid off with the sale of my current house still exists. This is a automobile loan ($15,000), a small home equity loan ($4,000), and currently about $4,000 in credit cards. My credit score seems to hover around the 650 - 675 mark, no late payments on any open accounts or for at least three years on any accounts. I’m trying to find either a bridge loan to buy the new property and cash out to pay off existing “other” debt or a blanket type loan that would bundle everything (old house, new house, other debt) together and provide a release clause for when my current house sells. Reading over this, I feel like I’m asking for an absolute miracle, so I guess the question is, can anyone help at a reasonable interest rate, long term solution to cover myself in the event my current house takes a long time to sell?
treefrog - do you really want to pay 2 mortgages (or 1 mortgage covering 2 properties)? It seems you are emotionally attached to the new house - you liked it and want to make it work. My suggestion - take a deep breath, analyze the numbers…
Even if you get someone to do what you want, you would end up having to pay a loan for $400k+ ($114k + $300K+ for the new house). Your payments would be $2.6k+ per month, without considering taxes, insurance, and other miscellaneous costs to carry two properties.
Not sure if you are going to get what you want… But please make sure you can afford what you want…
Good luck!
If the house you want to buy has been on the market for over a year without any bites, then can’t you feel confident that it will still be on the market in 1-2 months while you work to get your current house sold?
gigo - based on this analysis the house would never sell… it has been on the market for over 1 year, so I can afford to wait 2 or 3 months… In 2 or 3 months, the house has been on the market for over 15 months, so I can afford to wait another 2 or 3 months… And so forth…
Just last week I saw a house that was on the market for over 1 year. I took my time (a little less than 1 week) to do my analysis and prepare my offer. When I called the listing agent to submit my offer, she told me that I was too late… Another offer had already been accepted… so the fact that the house has been in the market for more than 1 year is no garantee that it will still be there next week… :O)
Actullay in the current market condition, you are probably safer with houses that have just hit the market… those are the ones that will more than likely stay there for the next few weeks/months until the seller realizes that he can’t seel for what he wants and becomes more reasonable…
Having said that - I agree that treefrog would probably be wise to wait until he sells his house…