Landlord
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Ok, what will happen is that you have to qualify to own the two homes in the first place. House #1 is not ignored because you are buying house #2.
When you foreclose on house #1 you are likely to still owe the bank money. If you do not, they received everything they originally gave you, money wise, then this is done. But, if they still have not received the same amount of money you were given they can start going for your other assets, which would include house #2.
This is nothing that Bush did. In fact your agent sounds off her rocker. |
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Pat
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I don't know about that one Jay Jay. Were that many people doing that that Bush had to make a law against it? Wow
Best of luck with it all! |
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cassandras_evil_sister2
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bush did pass a law on this subject, but im sorry to say im unclear on all the details, though urs sound about right. |
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Cali T
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You can't just switch houses and default on one. That is illegal. |
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Courtney M.P.
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If you can qualify for a new home loan while maintaining your current loan then you can do this. Your agent does sound off their rocker. You will close and move into the new home and then stop making payments on your current home. The first home will go into foreclosure and if they do not bring the loan amount in when it goes to auction there will be a defeciency that will be a judgement against you. But this judgement will not affect your second (new) home loan. Home loans reflect very badly when they are defaulted on, but they are a secured debt and there is no debtors prison in the US which means you can have as many bad debts as you would like without worry of loosing your new home.
Now you may find that a bankruptcy would be useful after you do the home swap as they will often cut off your other lines of credit when your original home goes into default. The bankruptcy will not affect this new home and your choice to keep it either, you are entitled to retain your home regardless of how you went about getting it. A bankruptcy will keep them from continuing harrassment and put an end to all debt so that you can positively rebuild your credit.
What troubles me most is that companies can forgive a debt larger than $300.00 and send you a 1099 that you have to claim on your taxes, if the mortgage company does this it could put you into a bad place with taxes. I believe this is nation wide, I live in Texas.
You should file a homestead exemption on the new home as soon as possible, you should be able to do this in closing, but you can only have one homestead exemption which will mean you will need to relenquish the one on your current home. Homesteading the new house will provide further protection.
Tell the realator that you will be renting the home unless you can find someone standing in the shade that will help you with the whole situation. |
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robrobiii
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If the new mortgage company figures you qualify, I don't see how they could prevent you....but a bankruptcy lawyer might decide to force you to sell the new home... |
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Irksome
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I suggest talking to a lawyer!!! |
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So Cali guy
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jay jay i believe there was something passed to help home owners keep there home due to the housing probs here in so cali. see or contact your mortgage company if or what is available cuz im sure your upside down on your mortgage. this will help them from having yet another home on the sheets that will go to foreclosure stats even though you may not yet be late or bhind on a payment. i've heard of them moving you principal loan to the current value on the market but have not personally used this.
check with them first to document your options then talk about what you found with your hubby as u say.
u may be surprised that they may actually lower your payment so u stay in the property otherwise they just keep loosing $$.
and if you can save sum $$ maybe you can still live in your current house if the burden is lessened,
j |
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realtor.sailor
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You can buy another home provided you qualify for a mortgage. What are you going to tell your new lender when he asks you about your existing home? You can't hide a mortgage it will show up on your credit report.
realtor.sailor |
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Michael T
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I think you need to talk to a real estate lawyer. |
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golferwhoworks
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you can do just that but the loss on resale of the old home will get paid by you as to default on it with a new note in hand is not even discharged in bankruptcy. Now you will have to qualify for the new note with the other in hand and it will be viewed as investment property since they will be in the same general area and you will be required to put 20% down at a higher rate. So when the new house you think could be refinanced to a lower rate that will not happen for 4 years with a foreclosure and judgments for the default in your credit file. What you are doing constitutes fraud and you are not the first ones to try this and may not be the last
I am a mortgage banker in TN & KY |
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estielmo
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You'll be liable for the shortfall on the old house, it doesn't go away.
So the point is, who will loan you money for a new house when you stiffed the other bank?
How will you pay that debt PLUS the mortgage on a new house? |
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chatsplas
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You have legal obligations. You bought the house, you promised the bank to pay for it. NO you can not just default and walk away free.
Probably you won't qualify for a loan on a second house, anyway. And this query says your word is no good. |
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