It is feasible if you time it correctly OR pay cash for the new
house. I could likely qualify for a new mortgage even before
"selling" the existing house/mortgage. So you get a one shot deal.
Another big thing going on around the country - or in the areas
hardest hit by the declining values, are short sales. you find a
buyer that buys your home for less than you owe and the banks are
accepting this stuff. Same result - but the departing homeowner is
not killed on their credit rating. Besides, credit ratings are only
needed if you need it. AND if you take a hit, you can rebuild a
credit rating in a lot less time than it would take for housing
values to regain 100 - 150%. it's a nightmare that America is going
to have to face one way or another. If the folks that CAN pay their
mortgages keep paying, are they really doing anything that REALLY
helps the whole of the economy? In times like this is Capital
preservation not Priority ONE? I did not buy a home that I could
not afford, nor did I buy it with no money down. I have a huge cash
investment in my house so that is already lost. To continue BUYING
my house equates in my mind to buying Bear Sterns all the way to
$2.00 - how did that work out for everyone?
I take your point on about capital preservation and what you say
about continuing to buy your house being a bad investment idea, but
if you were unable or unwilling to pay your mortgage and had
your property repossesed, are you saying you could still go and
obtain another mortgage for another property?
Posted by rgoodwin on 11th of Jan 2010 at 07:09 pm
No. Obviously if you wait until you lose a home to foreclosure,
you are going to kill all chance of getting another mortgage for
many years. BUT if you were to purchase a second home, THEN let
your existing go to foreclosure, you have "beat" the system. I know
a few folks that have indeed done just that. Fo course paying cash
for a home may be an option as well.
saturn6
mortgages
Posted by rgoodwin on 11th of Jan 2010 at 05:16 pm
It is feasible if you time it correctly OR pay cash for the new house. I could likely qualify for a new mortgage even before "selling" the existing house/mortgage. So you get a one shot deal. Another big thing going on around the country - or in the areas hardest hit by the declining values, are short sales. you find a buyer that buys your home for less than you owe and the banks are accepting this stuff. Same result - but the departing homeowner is not killed on their credit rating. Besides, credit ratings are only needed if you need it. AND if you take a hit, you can rebuild a credit rating in a lot less time than it would take for housing values to regain 100 - 150%. it's a nightmare that America is going to have to face one way or another. If the folks that CAN pay their mortgages keep paying, are they really doing anything that REALLY helps the whole of the economy? In times like this is Capital preservation not Priority ONE? I did not buy a home that I could not afford, nor did I buy it with no money down. I have a huge cash investment in my house so that is already lost. To continue BUYING my house equates in my mind to buying Bear Sterns all the way to $2.00 - how did that work out for everyone?
rgoodwin...
Posted by saturn6 on 11th of Jan 2010 at 05:56 pm
I take your point on about capital preservation and what you say about continuing to buy your house being a bad investment idea, but if you were unable or unwilling to pay your mortgage and had your property repossesed, are you saying you could still go and obtain another mortgage for another property?
saturn6
Posted by rgoodwin on 11th of Jan 2010 at 07:09 pm
No. Obviously if you wait until you lose a home to foreclosure, you are going to kill all chance of getting another mortgage for many years. BUT if you were to purchase a second home, THEN let your existing go to foreclosure, you have "beat" the system. I know a few folks that have indeed done just that. Fo course paying cash for a home may be an option as well.
rgoodwin...
Posted by saturn6 on 12th of Jan 2010 at 03:25 am
This is interesting...
http://www.businessinsider.com/how-to-walk-away-from-your-mortgage-2010-1#the-basic-calculation-1
Plus,you now get a 6500.00
Posted by shamutooth on 11th of Jan 2010 at 07:45 pm
Plus,you now get a 6500.00 credit when you buy another home to move into. I wonder how many people take the credit and default on the first home.