Thinking of buying a second home out of state and have some questions
I am Soooo over California. I'd like to buy a home in another state, and use it as a second home. Eventually (hopefully sooner rather than later), I'd like to move back there, but I am imprisoned by my current home/mortgage...Current house (in California) I am ~$110,000 down. Value: 210K; Loan: 320KONE loan...but this was a 2005 REFI, with some money (~30K) taken out to cover student loans.I have cash, and I believe I can qualify and purchase a home in the other state with both mortgages applied to my current income. If I do that, and then walk from the current property in California, what are the implications? If I take up residency in the other state, does that change the rules and/or potential consequences? I will make the assumption that the Mortgage Debt Forgiveness Relief Act will renew; but am I correct in assuming I will face tax liabilities for the cash-out from my refi?This is all very confusing-- probably on purpose I guess. by fredmi_524_362 from Lakewood, California. Apr 30th 2012
Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions
Fred:Do you currently have a Fannie Mae or Freddie MAC mortgage in Ca.? If so, you may still be able to access HARP guidelines to lower the payments a bit before trying to qualify for your new loan. Most HARP approvals do not require an appraisal, so the LTV is not an issue in these cases. Buying another home with the intention of walking away from this one can be an issue. If you buy it as a 2nd home, you will need to show some reason for the 2nd home, such as resort area, family nearby, etc...These are safeguards to avoid what you are talking about. If you qualify with both loans, there really isn't much anyone can do to stop you. Call me to discuss further if you wish.Patrick McCarthy, 614-310-7520
Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 233 contributions
I am not a real estate attorney, & I think that is what you need to answer your questions. If you walk away from your current property in CA, after purchasing another property, knowing on the front end that is what you're planning on doing then that is flat out fraud!
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
I can do your underwater home, and get your payments down to a low 4 interest rate, but if you are going to walk from your home at a later date, i am not interested..
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