interested in buying another house but afraid that my other house wont sell before i close on the other one. i cant afford 2 mortgages, yet it seems people do this all the time. how do they do that?
Better idea is to get a bridge loan from your lender. Anyone who will buy the house under the conditions you are stating will offer you a very low amount. Real Estate people will be very happy fo offer you 50% of what the house is worth and then flip it at a higher price to someone.
March 2nd, 2010 at 6:27 am
Better idea is to get a bridge loan from your lender. Anyone who will buy the house under the conditions you are stating will offer you a very low amount. Real Estate people will be very happy fo offer you 50% of what the house is worth and then flip it at a higher price to someone.
References :
March 2nd, 2010 at 7:01 am
Well let me just warn you before you sign any contract for this scenario. They will make the stipulations so restrictive that you can’t meet them, thus allowing them to NOT buy your home. See scam coming….
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Realtor/Appraiser-Minnesota
March 2nd, 2010 at 7:26 am
People that do it all the time are doing bridge loans and they have a HIGH rate of foreclosure.
Bridge loans tap out of the equity of your first home in order to make payments on the second, and removes the contingency on the contract.
What happens if you can’t sell it and the equity is used up? You lose the first home to foreclosure.
I DO NOT recommend doing that unless you can OUTRIGHT pay two mortgages. If you cannot afford to do that, then you cannot afford to buy another house without selling the first.
Without substantial income, banks aren’t taking risks like they used to on that. You would be lucky to find a lender that still does those, b/c most of my contacts have dropped those programs.
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March 2nd, 2010 at 8:10 am
The purchase contract is made contingent on you selling.
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Realtor @ http://www.searchcharlestonhomes.com