It doesn't appear you can successfully execute a "buy and bail" initiative unless you have sufficient income to support both properties (rental income is excluded) and/or job relocation coupled with a tenant who has signed a one year minimum lease.
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Gophermn, we were in the same situation recently and were unable to qualify for a new loan while we were living in our current high-mortgage house. Good luck to you and please let us know on this forum if you are successful in buying a new house while you still own your old house.Originally posted by gophermn View PostLeave a comment:
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In your scenario, your credit report is not the issue. The title search shows the house in your name and there is still a deed of trust filed against your house evidencing the mortgage on your home.
FHA, and pretty much all other lenders, have closed the loopholes to allow getting a second home without actual proof that the prior home has been sold, is rented (i.e. 6-12 months copies of rent checks), etc.
Just face it, this house is going into foreclosure, and it will be 3 years before you can buy another.Leave a comment:
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Again - let me reiterate I DO NOT LIKE DOING THIS NOR WISH FOR ANYONE TO DO THIS - however I need options and don't know of any. If you say there are no options then so-be-it. But I am sure there are others reading this right now that can respond to my post directly above this one.
Thanks all for the honest replies!!Leave a comment:
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Ok so let me throw this in. My credit report currently shows the property with a $0 balance because it was IIB and there has been no reporting to the credit bureaus for over a year.
So realistically, looking at my credit report, it shows i have absolutely no financial strings attached.
Also - my current home is a convential - not FHA.Last edited by gophermn; 02-05-2010, 05:51 AM.Leave a comment:
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Agree with the others, you have no option here.
Welcome to rental land.Leave a comment:
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That's not an option anymore. FHA guidlines were changed about 18 months ago to prevent it.Leave a comment:
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I'm not sure what you CAN do. But, what you suggest doing sounds like it may well be construed as mortgage fraud, so I certainly wouldn't advise doing it!
FHA will only guarantee loans for a primary residence. If you still occupy your current home and it isn't rented out already, and you can't explain to anyone's satisfaction what you're going to do with it, realistically, I don't see them riding along on a new mortgage.Leave a comment:
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