Here’s my plan. If you are upside down on your home, but you have the income, savings and credit score to buy a bigger, more expensive short-sale or foreclosure… here’s the plan…
Say you owe 300,000 on a home, but you can only sell it for 280,000 (neglecting other closing costs, commissions etc…), you will be able to roll over that negative equity into a new home (say a 400,000) as long as the sales price of the new home, plus your negative equity, does not exceed an 80% LTV… so…
your home: 300000
Sales Price 280000
negative equity: 20000
New home sales price: 380000
Appraised value: 500000
New mortgage amount (new home sales price + negative equity): 400,000 (80% LTV).
This would enable people with solid jobs and good credit to buy more expensive homes in foreclosure, and sell their less expensive homes to new home buyers…
I am currently IN Washington, Capital Hill to be exact, why won’t my plan count??