- This topic has 7 replies, 2 voices, and was last updated 9 years, 3 months ago by Anonymous.
- April 28, 2011 at 5:31 am #199818AnonymousInactive
We are trying to buy a REO property. Bank wants us to accept their counter offer regardless of appraisal report or termite or any inspection reports or even we get the loan closed or not. Bank is not even giving us 1 day of contingency period so that we can make sure atleast appraisal value is close to the contract price. *What should we do? We don’t want to pass this house as it fit our needs and its at a OK price(but not below market price).
Thanks in advance for your time.*
- April 30, 2011 at 2:34 am #416028AnonymousInactive
Absolutely no problem.
As long as your income can support both mortgages.
Even with your down payment, keep some cash aside.
You never know when you can lose a job, have medical not covered by insurance, or have major car repairs..
- April 30, 2011 at 2:34 am #416029AnonymousInactive
You can certainly do as you desire. However, DO understand that, if you ‘short sell’ your current property, you will NOT qualify for a mortgage to purchase another elsewhere. Any ‘short sale’ will trash your credit and make ineligible for another mortgage loan. You can certainly sell your existing property for less than is owed on same, but you will be expected to pay off the difference between the eventual sale price and what you owe on your mortgage.
If you do not do so, forget about getting another mortgage in the near future.
- April 30, 2011 at 2:34 am #416030AnonymousInactive
Your massive debt load would prevent you from getting the second home loan. Other than that, nothing.
- April 30, 2011 at 2:34 am #416031AnonymousInactive
You can run but you cant hide
- April 30, 2011 at 2:34 am #416032AnonymousInactive
Yes, you can you will have to prove however that you are not going to short sale or foreclose on the first house. I am in the same situation, but I rented out my house, moved into an apt and am in escrow on the second home in another state. I do not want to trash my credit therefore I will rent until things get better, then refinance and hopefully not be so upside down. Good luck and you will need a job at that other state, and show that you can pay for both homes.
- April 30, 2011 at 2:34 am #416033AnonymousInactive
you need enough income to qualify for that additional mortgage along with any other existing debt you have – if the total loan value of both houses is more than 3 times your annual salary, you are probably NOT going to get approved and 2nd homes / investment properties usually require a 20+% down payment – “some” savings is probably not going to be enough
- April 30, 2011 at 2:34 am #416034AnonymousInactive
Upside down on your current mortgage is not an issue-property values fluctuate constantly so, unless you are selling or trying to secure a loan against the property, the current market value is irrelevant. As long as you are current on the mortgage payments, the negative equity in your first home will not be an issue. The only impact it will have is that, when listing your current net worth and the value of your assets you would have a decrease.
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