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Posted: Thu Feb 07, 2008 8:45 pm Post subject: New motgage with an old mortgage.

I am getting a divorce and am thinking of buying a new house. My ex-wife is still living in the old house until she decides what she is going to do. I was curious if I get a loan for a new home will the fact that I am still on the loan for the old house affect me. We are planning on selling the old home but it would be easier for me to get my new place before the old one sells.

Any ideas. Thanks.

EEps · Posted: Thu Feb 07, 2008 9:06 pm Post subject:

Sorry to hear about yer divorce... Sad Smile

Don't think yer gonna be able to pull off the other loan until some sort of resolution on the first loan is taken care of...but I'm sure them financial dogs will chime in... Wink Smile

Good luck to yer future! Big Smile

Leg Humper Joined: 11 Oct 2003 Posts: 5997

Bad news.

Sell now and get it out of way. IF YOU CAN markets bad.

Posted: Fri Feb 08, 2008 1:33 pm Post subject:

If your debt to income ratio with the new loan payment included in the amount is less than approx 40% then a bank may go for it since you have the income.

But on the other hand, banks have been taking a hit for the past few months...so in turn they are scrutinizing loans even more now.

In my honest opinion, I wouldn't get my hopes up on getting another loan at this time.

Posted: Fri Feb 08, 2008 2:32 pm Post subject:

I have to agree. I was able to carry two mortgages with rental income on one, and high job income, 10 years ago. It probably ain't gonna happen now with something like $50bn in losses in the US mortgage market in the past 4 months. The situation is, by the way, worsening in the US.

It's actually worsening other places now too. 6 months of market paranoia is starting to really mess things up.

Even a high credit score will not help you if your ratio of income to mortgage debt is too high.

Posted: Fri Feb 08, 2008 3:13 pm Post subject:

Do you have enough downpayment and income to meet all your
currently existing monthly obligations PLUS the new mortgage?

Bankers go deaf when they hear "Well, I'm planning on selling..."

You will also need a FICO score greater than 820-ish.

Posted: Fri Feb 08, 2008 4:24 pm Post subject:

Thanks for the info. I am planning on talking to my mortgage company this weekend. The only redeeming thing I can think of is that the first mortgage we are both on so hopefully they take that into consideration. I have a decent down payment about 30-40% depending on the house I choose. The income situation is close. I could probably handle both mortgages but it would be very tight.

One of the issues I have is our dog. I guess I am getting the dog and the apartment I live in now wont allow a dog her size. I would like to have a house situation all squared away before I take the dog.

Thanks for the good wishes also.

Posted: Fri Feb 08, 2008 5:25 pm Post subject:

Compgod wrote:
The only redeeming thing I can think of is that the first mortgage we are both on so hopefully they take that into consideration. I have a decent down payment about 30-40% depending on the house I choose. The income situation is close. I could probably handle both mortgages but it would be very tight.

They wont. If your name is on the mortgage, they are going to count the entire mortgage payment towards you. The bank cannot determine who pays what share of the bill, or what will happen if both parties split ways as in this case.

If your thinking that the income situation is close and that things are tight, then the bank isn't going to accept it. They look at your income and bills and etc to ensure you can make the payment by not cutting it close.

Until this situation blows over, I would scout the area for any homeowners who are renting out houses. There are "flippers" who tried to make a buck but are now stuck with a property they cant sell but may want to rent instead.

Good luck to you with your search though!

Posted: Tue Feb 12, 2008 8:00 pm Post subject:

I talked to my mortgage lender today and was told what extreme said. I will have to qualify for both loans. Just thought I would clarify in case anyone else searches for this.

We have a real estate agent coming over tomorrow to give us a market analysis and then we will talk about what we are going to do.

Posted: Tue Feb 12, 2008 8:13 pm Post subject:

Compgod wrote:
I talked to my mortgage lender today and was told what extreme said. I will have to qualify for both loans. Just thought I would clarify in case anyone else searches for this.

We have a real estate agent coming over tomorrow to give us a market analysis and then we will talk about what we are going to do.

Is your existing mortgage more than the house value? If so you can look into doing a short sale with your mortgage holder.

Check Zillow.com for your house value if its available. It was pretty accurate when we bought our house in April.

Posted: Fri Feb 15, 2008 3:20 am Post subject:

No actually we got a great deal on our house. The housing market in Albuquerque has gone up significantly since we bought it.

It may be a moot point now. I just applied for a couple of jobs in Oregon. I would love to move back. If I get the job my company will do a lot of things to help sell the house.