How Do You Buy Another House While Doing A Short Sale?
Faced with the prospect of a foreclosure on your home, you elected to take the step to negotiate a discounted loan with your home mortgage lender. A discounted loan is one in which the balance due is reduced by the lender. With that agreement in hand, you are now proceeding with a short sale of your current residence. A short sale occurs when there is reduction in the balance due on an existing mortgage, permitting the sale of the property at a lower price. You may now wonder how you can buy another house during the short sale process. Discuss the prospect of a new mortgage loan with your current lender. You likely sought the agreement to discount your existing home mortgage loan because you were “underwater” on your current loan. Underwater is a real estate term used when the value of your home drops below the outstanding balance on a mortgage loan. This situation occurs in most instances through no fault of the homeowner but because of real estate market trends. Explain to the lender
