Two mortgages - are we insane?

[lecach]

Heres the background: DH got the opportunity of a lifetime job two hours away. More money (about $15,000), more stability, less stress. Instead of working for a failing local newspaper he's working for an NFL team. So he took it. My boss is letting me work until our house sells. DS and I will stay here until that happens. Our current house is in great condition and is the most popular floor plan - and it should sell based on responses we've heard and the other sales in our neighborhood.

This weekend we found the perfect house in the new town. It's $60,000 below tax value - the people are moving to another state and just want to get rid of it. It's in the neighborhood we want, great school district, and one of the best lots in the neighborhood with nothing behind it or to be built beside it. The house is only 3 years old and in perfect condition with all the upgrades. We'd have to do nothing to move in.

If we buy the new house we could put 20% down and wouldnt have the 2nd mortgage til November. It would be slightly above the amount that DH would have been paying in rent for a short term lease anyway. We have perfect credit and owe only for the current house.

The bank is agreeable to the loan. We have the cash for the down payment and could afford to pay two mortgages for a year or more if it came to that. We would have very little savings though in the interim. But both our jobs are very secure. And we have plenty of family that could loan us money in an emergency - and have offered to do so - in the meantime.

The cons are that if we do this, there wouldnt be much in reserves. And it would be 100% certain that DS and I couldnt join DH until we sold here. Although that was already the plan anyway.

So - is it crazy? Would you do it?

 

[ajk912]

No I would not. I would wait to make sure the job pans out, most jobs have a 90 day temporary period, and it would really, really, REALLY stink if he didn't make it out of the probationary period (for whatever reason) and have no job and now two mortgages.

I know nothing is ever certain, but in this economy there will ALWAYS be another great deal on a house. Guaranteed. I am no expert but I don't expect the housing market to rebound for at least two years.

 

[lecach]

No I would not. I would wait to make sure the job pans out, most jobs have a 90 day temporary period, and it would really, really, REALLY stink if he didn't make it out of the probationary period (for whatever reason) and have no job and now two mortgages.

I know what you are saying but he's been in the job for a few weeks now, there isnt a probationary period, and his bosses are thrilled with the work he's done so far. In fact the president of the company came to the office suite where his desk is to thank him personally for what he's done so far - and he's NEVER even visited those offices before. Of course anything could happen. But since we wouldnt close until October anyway he would have been at the job for 90 days at that point.

 

[Golf4food]

We've had two mortgages for over a year and it stinks, but we love our new house and have faith that everything will work out. Sounds like you are in a good position financially. If this is something he really wants and you can swing it I say go for it. America was built by people taking risks to acheive their dreams, right?

 

[lecach]

DH just spoke to our very conservative financial advisor and he didnt hesitate to agree that we should go for it. So - we are

The funny thing is that my DH is usually so scared and overly careful about everything. But he REALLY wants this house. He's so excited.

Wish us luck........

 

[ccgirl]

So glad things are going so right for you two. Something that caught my eye in your post was that you mentioned your DH was paying almost as much as the 2nd mortgage would be on a rental anyway. So...not much would change. And, it sounds like you have found a dream home so I would have gone for it too if I were in your position. I hope your new home sells quickly. Pricing it aggressively right off the bat will certainly help that.

 

[ajk912]

I hear what you are saying, I just wouldn't want to deal with the stress of two mortgages, myself. If I really loved the house I would consider going out on a limb and seeing if the owners would let me lease/rent it from them till my other house sold.

 

[lecach]

I hear what you are saying, I just wouldn't want to deal with the stress of two mortgages, myself. If I really loved the house I would consider going out on a limb and seeing if the owners would let me lease/rent it from them till my other house sold.

Well that's what we're trying first - but the listing agent doesnt think they'll go for it. They've already bought a new house in Virginia and were thinking about just walking away from this one. So they arent interested in a contingency. If they DO agree then it would be better for us, but we signed both a regular offer and a contingency just in case while we were there on Saturday.

 

[palmtreegirl]

Congratulations!!!

 

[RitaZ.]

I remember when you posted about the job interview. I'm glad everything has worked out so well. If you can handle the two mortgages, then go for it. It's not like the two of you are near retirement age or anything like that. Sometimes you just have to go for it.

Best of luck to you and your family!

 

[Lisa loves Pooh]

I. would do it only when the new job is secure.

We have purchased a second home to live in and keeping the first until the market recovers. BUT--hubby was working for 3 months before we did that and lives inexpensively with a friend until the home was bought. Additionally--rent where we were moving was simply too high. It was cheaper to buy something. (rent would have exceeded $2000)

 

[Lisa loves Pooh]

I may have to rescind my post. I just saw where you would consider walking away from your current home. I am assuming that is if you cannot sell it. I would not suggest walking away. Buy only what you can afford in your new place while keeping the old one. Our decision was based on our limitations that allowed us to not walk away. You don't have to have a dream house if doing so means that you will walk if you can't sell.

 

[Acklander]

So glad things are going so right for you two. Something that caught my eye in your post was that you mentioned your DH was paying almost as much as the 2nd mortgage would be on a rental anyway. So...not much would change.

I noticed this as well, and for that reason, I'd go for it. While it might leave you a little short on your cash reserve, the reality is, that's why we have a cash reserve. You were already planning on paying for 2 houses until the other sells,and you have a back up plan in case of emergency. Good Luck with the new house!!!!!

 

[Mickey'snewestfan]

I may have to rescind my post. I just saw where you would consider walking away from your current home. I am assuming that is if you cannot sell it. I would not suggest walking away. Buy only what you can afford in your new place while keeping the old one. Our decision was based on our limitations that allowed us to not walk away. You don't have to have a dream house if doing so means that you will walk if you can't sell.

I read that as the owners of the other house, the ones that they are planning on buying FROM were thinking of walking away. I didn't see anything that made me think the OP was considering walking away, she seems confident that her home will sell.

 

[lecach]

I may have to rescind my post. I just saw where you would consider walking away from your current home. I am assuming that is if you cannot sell it. I would not suggest walking away. Buy only what you can afford in your new place while keeping the old one. Our decision was based on our limitations that allowed us to not walk away. You don't have to have a dream house if doing so means that you will walk if you can't sell.

Oh heck NO! WE would never do that. NEVER NEVER! The sellers of the new house are considering it. They think if they dont sell then they can easily just go into short sale and be done with it. But they dont qualify for short sale.

 

[Lisa loves Pooh]

I read that as the owners of the other house, the ones that they are planning on buying FROM were thinking of walking away. I didn't see anything that made me think the OP was considering walking away, she seems confident that her home will sell.

Maybe I am reading it wrong....I probable inserted an apostrophe when I read it. Oops.

Sorry OP!

 

[wdwfan16]

Good luck.

BTW I would have voted to buy the house.

 

[Acklander]

I may have to rescind my post. I just saw where you would consider walking away from your current home. I am assuming that is if you cannot sell it. I would not suggest walking away. Buy only what you can afford in your new place while keeping the old one. Our decision was based on our limitations that allowed us to not walk away. You don't have to have a dream house if doing so means that you will walk if you can't sell.

I believe it's the people who are selling who are thinking of walking away, not the OP

 

[Anne34]

I would buy the house also. You would be paying that much in rent and getting mothing from it. We currently have two houses also. Our old house was for sale, rent to own or rent. Almost all the people who looked were looking for renting. We have been VERY picky about who we will rent to and have finally picked a family to rent it. This is a 12 year old house in a nice neighborhood with great schools -- houses just aren't selling well here right now unless you go very low & we weren't willing to go down that low. A lot of people bought way bigger houses than they qualified for from our builder and are in short sale now. We'll just wait for the market to recover a little.

Good luck to you!

 

[tar heel]

For what it's worth, house sales are very slow in Concord right now. Some of the new neighborhoods are pretty over built, and sellers are going to be pretty happy for any kind of offer. Who is telling you that they will walk away? Is it someone with a vested interest in this house selling immediately?

I personally would push the contingency really hard before I did this. You don't have a job here, I assume, and there's no guarantee that you will get one quickly or at the same salary you have there.

Welcome to Concord. It won't be as drastic a culture shock as when we moved here from Chapel Hill in 1986!