DH Wants to Buy Another Home Before Selling Old One...

**CYork** · 07-17-2009, 09:55 PM

We've only had our home on the market for a short time, but I am already getting discouraged due to the lack of qualified buyers in our area. My DH has accepted a new position in a neighboring town (1 1/2 hours away) and can't wait to move the family.

He has found a home in the new community that he just loves and fits every need our family has. The problem is that I am so reluctant to take on another mortgage before the other one sells. We could make the payments on both homes for an indefinite amount of time, but the whole situation has me stressed.

We've been looking at homes in the new community for several months now and this is absolutely the best one we've seen for the price. It's a foreclosure and the bank has just reduced the price by almost $50,000. I know that if we don't make an offer on it that someone else will since it's such an amazing home. The home is actually brand new and only needs appliances and window treatments.

My biggest fear is that we buy the new home and are unable to sell our old one for another year or two. In that time period the price of our old home will most likely continue to drop. Another consideration is that we completely slash the offered sales price for our old (current) home and see if that shakes the bushes for a buyer. We could drop the price down quite a bit and still make some money based on our purchase price. I don't know what to do...

Looking for advice...

**frugalfranny** · 07-18-2009, 02:18 AM

The THOUGHT of two mortgages in this economy makes me shudder.

Dangerous move, I don't care how long you THINK you can afford the payments. I could do a lot of what if's here(something else major happens, blah, blah, blah) but you know them already.....think it over.
Drop your price QUICKLY if you are going to do it........good luck.

The other questions I would have is.......how well do you know the area you would be moving into? Safe? Good schools? Good neighborhood? How many homes are foreclosed in the neighborhood?

**AmyBoz** · 07-18-2009, 08:14 AM

We've done this twice, and it was a bad situation, both times. Yes, we could pay the two mortgages, but it made things tight, tight, tight. And, the truth is, we then couldn't do some home improvements because the money was going into the second mortgage. You can never make that money back.

We have found a house that we LOVE right now, as well, but we know that in this market, it could be a long time before this house sells, AND, we don't even have it on the market yet. So, we'll wait. If this house isn't still available when we are ready, then we'll find something else. It's just a scary time to be in that situation.

**nuisance26** · 07-18-2009, 08:23 AM

~Trust your gut feeling: it's a bad idea!
A 3 hour daily commute will be inconvenient for awhile but it's doable. Congrats to your hubby on the new job!~

**Karen1** · 07-18-2009, 08:45 AM

Mostly a bad idea.

ONLY WAY I would do this is if I had the money....and all the money in savings or CDs or some financial vehicle I could rely on. ONLY if you truly could pay off that home if needed fast would I do this.

Paying 2 mortgages is just not needed. You don't need to move right now do you? You WANT to move right now....and that could mean major financial problems just because of a "want".

So need vs. want and WANT can get you into tons of trouble for life...LOL

**Greebo** · 07-18-2009, 08:58 AM

Unless you can pay cash for it, no, NO, NO

You run the serious risk, especially in this market, of becoming long distance land lords and carrying two mortgages.

NOT worth the risk. There will be other "oh its just perfect" houses in the new neighborhood. You may have to rent a while as you look for it, but it'll be there sooner or later.

**Greebo** · 07-18-2009, 08:59 AM

How much is the house you're selling worth, and what are you asking for it? And what do you owe for it?

**hmcart** · 07-18-2009, 03:44 PM

I agree..its a bad idea. I have a friend who wants to do the same thing...bad idea!

**NikoSan999** · 07-19-2009, 09:49 AM

No, no, no

**craftypam** · 07-19-2009, 10:14 AM

Congrats on the new job!!!! If you were meant to get this house yours will sell. If not, that is not the house for you. I always have this attitude and things work out. I know someone who did exactly what you are talking about doing. While out of the first house and living in the 2nd the first one had a flood and got really ruined. Insurance company is giving them a very hard time paying (surprise, surprise) and a long time later I still don't know if it is resolved so they stilllllllll have 2 mortgages. I also agree that the way our economy is how long will it take to sell. Good luck with whatever you decide.

**peanut** · 07-19-2009, 10:56 AM

Congrats on the new job! I too would not take out a mortgage on a second house. Is there any way your DH could rent a room and spend the week at work and come home on weekends? Just until the house sells?

It also could be your realtor isn't too keen on selling the house at the price you have listed and is just waiting for you to be in a panic situation like this. We had a realtor who tried to pull that on us. He wanted to sell our house to a friend. So he convinced DH to lower the price about $10,000 below what other houses in the neighborhood were being sold for. I was really ticked. However, we got the last laugh. We bought a house in the new city for the same price as we sold the old one...and are now sitting on an asset that is worth 5 times as much!

**staceyy** · 07-19-2009, 11:58 AM

I worked in the mortgage industry for years, and have seen many people get stuck with two mortgages for long periods of time. It is wishful thinking to imagine you will sell your house immediately. Many people end up renting the old home out if they cannot find a buyer, often for less than the mortgage payment, and they are tied in to long leases. The whole ordeal can become a nightmare. Very seldom do things work out perfectly. Think of Murphy's Law.

**pecunierrant** · 07-19-2009, 12:48 PM

Don't take on two mortgages, the stress alone would be awful. Several of my former neighbors did this and have tales of woe now. They end up renting their home out and the renters haven't treated the property well costing them cash to repair and buy appliances that were damaged. Security deposits don't always cover the costs, etc.

I'd slash the price, maybe get a more on their toes real estate agent and get your home sold pronto. Good luck!

**Dancing Lotus** · 07-19-2009, 01:29 PM

Not worth it in my opinion. A House is just a house and they always seem like the PERFECT Home in the beginning but in time you become disenchanted with it. I am sure that when the time is right you will be able to find a home you will love.

My parents have been paying on two mortgages for three years now. They can more then afford it but it's still causing stress between them.

**CYork** · 07-19-2009, 05:43 PM

Thanks for the sensible advice everyone. I have a lot to think about.

Greebo, the house we now own is priced at twice that of the home we are considering buying. (We are ready to downsize.) We have a considerable amount of equity in our current home.