Two mortgages - are we insane?

[lecach]

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!

We are pushing the contingency for sure. But the listing agent is really clear that the sellers do not want to go that route. We're still trying it though - at least a lease during the contingency period. The listing agent is telling our agent that the owners might walk away and she has advised them against it.

No, I dont have a job there yet. But DH is making enough additional, and the new mortgage is less than here, and we wont be paying daycare anymore. So even if it takes me a long time to find a job we'll be fine - even if it's just 1/2 of what I currently make we'll be ahead. I have a pretty varied background and still have contacts from Salisbury from when I worked there for 6 years so hopefully I will find something. My current boss is giving me a great recommendation and has contacts all over too.

 

[Luvchefmic]

I remember when you posted about the interview too and I think when you also said he got the job (who could forget you the DS that gets bacon ! ) so congratulations on all of that. I LOVE to hear great experiences it gives everybody hope. I agree with some of the others, you're young, you found your dream house. Nothing is guaranteed of course in life but it seems like you and DH are getting your ducks in a row and have looked at the possibilities if your original home doesn't sell right away..I say GO for IT!

Don't look back years from now with the could have, should have, would have, you know?

 

[Muushka]

We did the 2 mortgage thing once. It is a little stressful. My only caution would be that you may need to come down in your house for sale price if it does not sell. We were lucky that it only took 2 months to sell ours (back in 96), but we were prepared to continue lowering our price to avoid having 2 mortgages.

Good luck!

PS get a really good real estate agent.

 

[indimom]

We did the 2 mortgage thing once. It is a little stressful. My only caution would be that you may need to come down in your house for sale price if it does not sell. We were lucky that it only took 2 months to sell ours (back in 96), but we were prepared to continue lowering our price to avoid having 2 mortgages.

Good luck!

PS get a really good real estate agent.

Can't agree more!!!!!! Get some good recommendations and be choosy about your RE agent.
A friend of mine did the same thing you are doing. They got a LOUSY real estate agent. Took them over 2 years to sell the house. Trying to keep things going at both homes, while working full time, and caring for their boys was very stressful. Move That House!
Good Luck with everything!

 

[LuvOrlando]

Congratulations on all the good things coming your way!

But, at the risk of raining on your parade, why the rush to BUY another home? Why not rent until you are safely transitioned? I don't see one obstacle here, but 2 with a 3rd unknown. The first is selling your home. You are making a purchase based on the assumption that you can sell your home within a year, why on earth make that assumption? Lots of people have had homes on the market for much longer than that and have reduced their prices well below what they THINK they should be worth and still no-one buys. No-one is buying because so many people are out of work and if they are working they are underemployed so they won't qualify for the loans. The second is that you don't seem to be thinking about your own job. You say you are stable but that your DH is moving to be closer to the 2 hr new job, which tells me you would too have to find a new job in the new area. With so many people out of work I can't help but think it's a little ambitious to think you will be able to sell your house and get a new good paying stable job in new area easy breezy. Then there is also the distant possibility your DH's new job might not work out, it happens so it should be considered.

Anyway, I think everything sounds great with the exception of buying a new house. Plenty of people are upside down on properties they can't sell so they are renting them instead. Sounds like you could easily afford to rent a townhouse, a condo even a whole house so why buy? The beauty of a rental is that there are far fewer strings attached so if things go south on any of the 3 issues I mentioned you and your family will still be ok, you can walk away with no costs building over time. Good luck with whatever you choose to do but I would seriously caution against picking up 2 properties unless you can maintain them both easily, including taxes and all other expenses, indefinitely.

 

[KathyTX]

Sounds like you have a good plan and a strong support system. If you're thrilled with the new house, snd confident that you can price rhe old house to sell, I'd go for it!

Waiting means more time in transition, and what are the odds of finding another home you're this happy with and at a price you feel is a bargain?

 

[clutter]

We did the 2 mortgage thing once. It is a little stressful. My only caution would be that you may need to come down in your house for sale price if it does not sell. We were lucky that it only took 2 months to sell ours (back in 96), but we were prepared to continue lowering our price to avoid having 2 mortgages.

Good luck!

PS get a really good real estate agent.

I'm in the middle of it. I'm closing on the old house this week (provided most of Maryland gets phone service back and the buyer's bank can confirm loan approval!), just moved the rest of my stuff from the old to the new. I'd do it again in a heartbeat.

However, don't go by the tax assessment for market value. Get a good agent and have them run the comps!!!!

 

[lecach]

Congratulations on all the good things coming your way!

But, at the risk of raining on your parade, why the rush to BUY another home? Why not rent until you are safely transitioned? .

In part because my husbands new company will pay for a one way move. So we dont want to move twice.

 

[lecach]

However, don't go by the tax assessment for market value. Get a good agent and have them run the comps!!!!

We have a great agent there. She was shocked at the price and agreed that if this goes through that it's a great deal. She is one of the top agents in that area. We were referred to her by word of mouth.

 

[lecach]

PS get a really good real estate agent.

we sortof have multiple agents working for us. Our listing agent lives in our neighborhood and knows the houses and the area well. My Mom is an agent in another town and is very helpful - she can look up stuff that is only available to agents . And our realtor in Concord has given us great staging advice.

 

[disneyfans95]

I would not do it. You don't have any assurances about selling your current house and the last thing you want to do is be a landlord from a distance.

Just wait till your current one sells.

 

[Pinkpony]

OP,

We always buy our next house before we even put our current house on the market. I would never put myself in a position where we sell our house and only have a small amount of time to find the next one. Doing it this way enables us to find the perfect house to suit us and enables us to get better deals (for a number of reasons I'm sure I don't need to explain).

Yes, the market has changed recently, but I still wouldn't do it any differently for our family.

My vote is to do it if you're financially stable. It would be different if you didn't have the down payment saved or living month to month on a tight budget. That would change everything, in my opinion.

Good luck!

Pink

 

[EdiePA]

I did it when I moved to Pittsburgh. And ended up with two mortgages on this place because I could only put $10,000 down. Little did I know that I'd be paying three mortgages because the house "back home" didn't sell for 21 months.

Luckily, I had a great financial planner and a great plan. I made it -- even with my college age son (aka "the mouth") moving home for the same time period and having to feed him!
I love my new home and wouldn't change anything.

If you're financially able, go for it.

Edie

 

[golfgal]

Would you consider renting your current house out if it didn't sell on time. It would be very difficult to give up a house at that price. It is always nice to have a back up plan. Will you be close enough to get to the house once in a while to check on things if you rent it out?

 

[lecach]

We're not comfortable renting it. People just dont always take care of houses that are rented. Plus - I have to keep my job while we have two mortgages and I need a place to live.

 

[golfgal]

We're not comfortable renting it. People just dont always take care of houses that are rented. Plus - I have to keep my job while we have two mortgages and I need a place to live.

Right, but if the house doesn't sell for a year, are you willing to live apart that long? Floating a second mortgage for a few months is one thing, but longer than that and it becomes stressful as well as being apart from your DH, not fun.

 

[klacey1]

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?

Couldn't agree more. Glad you decided to go this way, OP!!

 

[Lisa loves Pooh]

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.

My apologies. I misread "were". I read it as "we're".