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  1. #1
    Join Date
    Apr 2009
    Posts
    1

    Question If We Buy New, then Short Sale on Current House

    My question involves a foreclosure in the State of: Ohio.

    We live in an old home that still needs a bit of updating (kitchen).
    We are already looking at losing about 15-17K on this house; we will not get out of it what we've put into it, and what we owe on it. We've owned the home for 3 years, and do not want to put anymore money into it.
    We would like to either buy a new home or build, and are wondering how
    bad it would hurt us to go ahead and get the mortgage for a new home, then sell this house for considerably less than what we owe, resulting in a short sale. We may have a few late payments, but on time for the most part. I don't think this falls along the lines of foreclosure, as we've made all of our payments, but want to sell it for less than what we owe. I might be wrong - isn't that a short sale, not a foreclosure, and therefore not as bad for credit?

    Thank you for your advice on this.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: If We Buy New, then Short Sale on Current House

    You probably won't qualify for a short sale if you own additional real estate. A bank will generally only consider a short sale if you're truly insolvent.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: If We Buy New, then Short Sale on Current House

    a short sale must be negotiated with your lender. It is not an action you take unilaterally.

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