We want to move but owe a current mortgage balance for a property that is not selling...are we stuck?

We have already begun a new home search and think we have found some viable options. However, there may be one hinderence to our future plans. We have no down payment money and currently own a condo that has an outstanding balance of $72 thousand with a market value of $85 thousand if lucky. We are desperate to get out because the building is turning for the worse, primarily because of a shift property management. This is no longer a place that we want to live and that feeling is shared by my most other property owners. There is more than 20 units for sale in the building I live and they are simply not selling. Are we stuck? Is there a way for us to free ourselves of this current situation that would still allow for us to move into a better suited property? Any professional expertise or similiarily survived scenarios are greatly appreciated and thank you in advance!|||I am mortgage broker. you can do a bridge loan but they are not easy to get and can be a hassel. You can own two homes at the same time. If you can afford to pay 2 mortgages based on your debt to burden ratio then a lender will loan you the funds for a new home without a contingent of sale on the condo. If you do not meet the debt to burden requirements they would approve you but it would be contingent on when your condo sold!! so obviously you want to talk to a few lenders and find one that will approve you without having a contingency of sale. You would just have to wait it out though paying two mortages until that condo sold. or you could always rent it after you move (thats just a personal sugestion to rent it). and keep it as an investment property. Now the trick with renting it is this (say you really want to sell it and have no plans on renting it)....all you need to provide the lender with is a signed rental agreement....(its a lil shady and you dont want to get busted doing that but a friend can sign one for you to turn in to get rid of a contingency of sale for the condo)





as far as the equity in the condo yeah you wont get anything out of that. that lil amount you have would go to the realistate agent, fees and closing. So what you want to do if you have a good debt to burden ratio is do an 80/20 loan on the new home. yes you would have two mortgages on the new home ( a 1st being the 80 percent and a 2nd being the 20 percent)but both would be going to pay down your principle on the loans and you wont have to come out of pocket for a hefty down payment fee and you wouldnt have to pay PMI for a low downpayment either.|||You could ask a local mortgage broker about a bridge loan to see if it would be suitable for your situation.





Best of luck|||It looks like you're stuck paying "carrying" costs, i.e. the mortgage between the time you move and the time someone else buys it.





Is there any way you could rent out the property?|||you may have to come to closing table with money, after commissions paid etc... talk with your agent %26amp; see if they will do less commission or can work something out since you are buying another property.


also have that agent check all teh for sale listing in your area and try to get at least $1000 under teh lowest priced property if not more, you have to get everyone to look at your property verses the others that are for sale.


and make sure yours is ready for sale, have it show ready, paint, carpet, all your junk out etc...and never be at home when they show it always leave go for walk or out to dinner.|||You might want to consider having a local Realtor place your condo as a lease option. This way, you can ask, for example, for 10k down from an interested party, and then give them 1-3 years to purchase the property at say, 85k. In the meantime, they make your mortgage payments, and you can take the down and apply it towards your new home. Or you can list the property at a nice low cost as a lease option, then if the potential buyer doesn't purchase it in like one year or less, you can state that the purchase price will go up. You can work the lease however you want; you could say 15k down and give them more time, then when the time is up require another down, or else by then prices will have appreciated, or you can just continue to rent out the place at the cost of your mortgage payments. Another option is to obtain financing in the form of a bridge loan; which will motivate you to sell your home at a bargain price if renting it to pay your mortgage isn't feasible. Hope this helps :)