Got another mortgage this weekend !
 

Our home in Atlanta has been for sale for 3 months and we have had 2 offers for our asking price and they both fell threw due to financing. Since it is for sale we have been reluctant to buy another b/c we're not exactly thrilled about have 2 mortgages.

Well on Thursday the home of out dreams came up for sale as a distressed property (code for soon to be foreclosure ). We looked at in once on Thursday and submitted an offer shortly thereafter.

Well we got the call last night that our offer was accepted. We are really excited since we fell like we are stealing it ( 100 k less than others have sold for in that development in the last 3 months). We are also a little FREAKED out since we now have a rather large financial obligation until we clear our current home. We are financially prepared for it but now that that the ball is in motion it is a bit unnerving.

Has anyone else ever taken this plunge? I know we can handle it financially but I would love some comforting stories of this working out for others :D

Matt

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I haven't personally but a friend of mine recently went through the same scenario. His old house was on the market for a few months but it did finely sell. Things were a little tight but him and his wife managed. I think part of it is knowing how the market is currently and not trying to make a mint off the sale but I am no expert. Good luck and its a really nice looking house.

Had two houses for sale in NY.

Relocated to TX.

Ended up with 2 mortgages AND rent for a bit.:eek:

Closed on one NY house last Nov.

Closed on 2nd NY house 2 weeks ago.

Closing on new place in TX in 8 days.

Lease in TX is over end of month so for 3 weeks I'll be back to mortgage and rent.

New place,

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Since your up a 100k on the new house why not take less on the old house. Don't be greedy!

in more than one sad story of foreclosure your scenario is the first chapter.

in our neighborhood (****ty nat'l homebuilder) a local couple (whose ****ty local homebuilder house is also for sale) purchased a large home the style of which had been selling for $620k for about $402k. It was just too good a deal to pass up they thought.

Both homes (again, ****ty nat'l homebuilder homes, not top of the line quality jewelboxes) have been for sale for some now and a 'for rent' sign recently appeared in front of the one they don't live in.

They were greedy and IMO are headed down the financial drain.

my guess is they aren't up 100k on the new home. sounds like it was listed on the open market. if their offer was close to list price (and not some ridiculously low figure) then they paid market.

our guy may be more than able to cover both mtgs but a lot of folks in this scenario are not.

my feeling is the only way to guarantee that you don't go to foreclosure because you couldn't carry two mortgages is to not carry two mortgages.

I got lucky on this deal on my last move. I listed my old house 45 days before I had to move and ended up leaving it vacant. The first offer, only a couple of weeks after we had left, was only $10K below asking, so I made a paltry counter-offer, which they accepted. We closed within two weeks. Easy.

That said, I was prepared, financially, to be paying both living arrangements indefinitely. It wouldn't have been pleasant at all -- mac and cheese every night, no eating out or new clothes, the whole works. The contingency was in place, if need be. I'm just glad that little period of stress is over.

Dan

[QUOTE=stomachmonkey;3991301]Had two houses for sale in NY.

Relocated to TX.

Ended up with 2 mortgages AND rent for a bit.:eek:

Closed on one NY house last Nov.

Closed on 2nd NY house 2 weeks ago.

Closing on new place in TX in 8 days.

Lease in TX is over end of month so for 3 weeks I'll be back to mortgage and rent.


Your story makes me feel better ! We will be just fine since we have a good savings and 2 good jobs. We do a great job of planning ahead and knew that this situation may arise since. It's just good to hear that someone else tool a calculated risk and it seems to be working out for you.


"Since your up a 100k on the new house why not take less on the old house. Don't be greedy!"

No greed involved at all. We've got the old home listed for about 15k more than we owe on it. To be honest we have no problem just breaking even.

We've got out home priced right and it's in a great area. We just need to be patient and it will sell. SmileWavy

One went under contract in our neighborhood earlier this week.

Timing is everything. I bought my house in Fairfax, VA before I was able to list my old one in Alexandria. I borrowed $70k from my folks for the down payment on the new place. The day after I finished moving all my stuff (DIY'ed it all) from the old place to the new one, I hired a cleaning lady to spruce the old place up and it went on the market that day. So I closed on the purchase of my new place on 10/20/04 and my old place sold and closed on 12/18/04. I had to make mortgage payments on both places just once. Got the proceeds from the old house, paid off the folks and all was well.

This last move cut it way closer. I put my place in Fairfax up for rent in late Jan. with a late March avail. date. We signed a lease in Phoenix in late Feb. but with no takers on the Fairfax place. About mid-March we finally found some takers and they wanted it for two years, for which I knocked $100 off the monthly rent. FICO's in the high 700's, 10 yrs. in the same job, real nice folks, came by on the way home from church to drop of sec. deposit and first month's rent. I was in Phoenix a week later. Now, that was cutting it close. Paying the mortgage while renting in Phoenix would have been bad enough, but having to get neighbors or realtors to show the place for me while I was so far away would have really sucked.

whoa there bud! you said 'we have good savings'. i HOPE that is not your plan for paying for both mtgs if need be.

this would mean you're spending more than you earn and that would be bad. don't know about your r/e market but ours is in the ****ter big time. fair price or not the buyer pool shrunk a LOT (as you've seen by the financing issues your buyers have had).

note that Dan says he could've maintained the deal indefinately. this means he wasn't pulling from savings. this tells us that Dan was ALREADY being very conservative with his money. most of us buy as much house as we can afford.

again, don't know if this is where you're at but i thought it would be wise to point out why Dan's deal MAY be different from yours.

Ended up renting our house in AZ to the wifes sister and everyone's happy.

I bought my current house with a bridge loan, before my old house sold.

We left enough furniture to stage the old house nicely, and moved everything else out. We listed the house, didn't get any written offers within a week or two, dropped the price by a few thousand, and instantly got a full-price offer.

Worked out great, partly due to my realtor friend who knew the market better than I. We listed and sold for more than I thought the house was worth.

A sub I use had 3 houses to float for over a year.

Moved to Tennessee from FL to retire and hadn't sold his house here. Then found a nicer house on the water and put his house on the market there. Took him 1 1/2 to sell the house here and still is trying to sell the house up there.

Needless to say he is back to work making 1/3 of what he made here.

Some friends (a couple about to get married) in a fit of bad planning currently have four mortgages.

I am about to break free of having two mortgages and a home equity loan. House in Alabama closes in about two weeks which will eliminate that mortgage and the home equity loan. We have only been making the three payments for about two months now, so it is working out OK. This a bad time economically to have to sell a house. We got crazy low-ball offers on our house.

I think you'll be okay- 2 houses just sold on my street. Not for top dollar mind you- but a house will sell if priced correctly.

Atlanta didn't see the nutty RE bubble, so it seems we haven't seen as hard a hit either.

Matt, I am in ATL as well with 2 mtgs.....fortunately one is in the N.Ga mountains. What side of town are you on, I am in the Vinings.
Mark

I had two and 1/2 mortgages for about two years {two mortgages and a construction loan}. Keep to essentials - watch your cash flow - don't pay things off - but keep things current and you will be ok. I told my wife after the ordeal - that it's amazing what we waste.

We still have some debt to pay down (mostly from new furniture and furnishings) but we are making great strides if I can keep the wifey out of the malls.

My wife and I almost did this. We have been waiting for her house to sell in Charlotte and we found a really nice place down here that we desperately wanted to put an offer on. I was very reluctant and managed to persuade her to hold off even when the price on the place we wanted dropped 10k. Needless to say that place sold a few months ago before we finally accepted an offer on her house. The good news was we just found a place much better than the original one, and now we have a sale agreed on hers, we put our offer in and we're set to close on that in a little under two months.
Good news on my part - extra large garage easily tall enough for a lift with attached 10x10 workshop!

Good luck with the sale Matt!

Mark,

I am in Smyrna/Vinings as well. Nice place right near S. Atlanta Rd. and Spring Rd.

If you don't mind me asking what kind of interest rate did you get? 15 or 30 yr?