Selling and Buying: HELP!!

ShannonMarie08 · November 2014

I purchased a house before my husband and I married. A year later he got a great job opportunity and we had to move. The housing market was horrible so we rented out our home. All of my savings went into the downpayment for that home. We want to purchase a home because we can't save money while renting. We have no down payment for a new home. What are my options to purchase a new home? I have no idea where to begin to even start asking professionals for help! Anyone have any reccomendations of who to talk to?

formerlyGDaisy09 · November 2014

I don't think most people on this board would recommend purchasing anything with zero down payment (even thought there might be offers out there). I would post your budget and the ladies here are pretty good at finding places where you might be missing money that you could be saving.

Sisugal · November 2014

Find a cheaper place to rent.

Erikan73 · November 2014

I would contact a realtor back where your house to see what the housing market is like in your area & see what you can get for your house. If it's worth it financially, the nice thing would be to check with your tenants to say, hey I'm putting the house on the market for $xxx,xxx and I wanted to give you the first chance to bid on the house since you already live there. Think it over & let me know by xx date, if you opt not to I will be putting on the market. Now if the market isn't good yet, then you will have to look into other options on how to save the money up like cutting expenses and/or getting 2nd jobs.

Xstatic3333 · November 2014

Your first step is to figure out what the house is currently worth and compare that to what you owe on your mortgage. If you're in the hole, there is unfortunately not much you can do except buckle down and save to pay the difference. Yes, some people do short sales, but I see that as a way to forgo bankruptcy or foreclosure, not to get rid of a house easily. It has a major impact on your credit.

I'd rent the cheapest place you can to save up more quickly. Like PP said, if you post your budget we can brainstorm other places to cut back. You could also refinance and try to lower the rate of your current mortgage.

I would not buy until you have saved an emergency fund, closing costs, start-up and moving costs, plus a large enough payment to get a conventional (not FHA) mortgage. Good luck-sorry there's not an easy answer to this one.

hoffse · November 2014

I agree with the others. Buying with no downpayment is a recipe for disaster (though I know one guy who did a 105% loan for his first house and has done fine... those don't really exist anymore though).

Keep in mind you also need to deduct realtor commissions. Those are typically 6% and paid by the seller.

I'm also not sure how you were able to save money before getting married (and, presumably, paying rent somewhere), but now you can't afford to save money. If your home is being rented out, that should cover much of your mortgage costs.

ShannonMarie08 · November 2014

I was involved in a car accident and was given a settlement. That's how I had money for the house. My husband and I would be able to save more money, but unfortunately we are paying a ton of child support. Not to mention his medical bills thatWe are currently attempting to pay off all the debt. I am renting the cheapest and most stable place we could find. We don't have the luxury of renting just anywhere since he has a son that we have to provide a safe neighborhood as well as a decent place to live. If we put our house on the market and do not have tenants in the home we cannot afford to pay the mortgage and rent. Not to mention that after the lease is up where we are now the rent will increase. If we move we having moving expenses and the security deposit and first and lasts month rent so there goes any money we have saved for a house. I owe 123,000 roughly, but the house is valued at 160,000.

Sisugal · November 2014

Looks like you would clear about 30K if you sold. Apply that to your other debt - then save, save, save. Sell stuff you do not need/use/want. Get second PT jobs. Limit gift $$ spent for Christmas,
forget vacations and eating out. Limit clothing to absolute necessities - buy those on sale/clearance or consignment shop.

Track ALL your spending for the next month - EVERY DOLLAR! You will see where you can cut back.

You CAN put the house on the market with a tenant still living there - it does not have to be empty. Work with a realtor and the tenant about showings, etc. Be aware of tenants' rights laws in your state and local city.

Looking forward to seeing you ppost a budget.

Selling and Buying: HELP!!

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