bankruptcy equity home loan
If I’m buying another home in a different state can I refinance or use my homes equity to buy the other home?
I have a 2 family home in Massachusetts. The value is 246,700.00. I owe only 139,000.00. Can i refinance and use equity to buy another home in Florida. I plan on moving to Florida eventually and would like to use the money for a downpayment.
I plan on keeping the 2 family and renting it out to pay for the mortgage once I leave but my fear is that I am going to end up losing due to nonpaying tenants. What if I can’t afford my old home. Can i lose both homes, or will I have to sell my 2 family home and hope that the selling price will cover the amount i owe on the loan.
Will bankruptcy effect my new home in Florida? I am looking at worse case scenario here. My 2 family can be a money maker when the economy gets back on track.
1. Yes you can use a home equity for anything you want.
2. You only lose your homes if you don’t make payments, don’t buy two if you can’t afford to cover periods of tenant non-payments and unexpected expenses.
3. Once you have a mortgage a bankruptcy does not change the terms and why file bankruptcy ever? You would be foreclosed on instead without needing bankruptcy.
4. Bad economy is good for rental properties, good economy and everyone buys homes (eventually). You only need two good tenants, hire a solid reputable property management company and factor their costs into your expenses. It’s not as if you are trying to fill a large complex.
5. FYI, you only need 3% down to buy a home in general. 0% in USDA rural areas. Also, Florida property is among the greatest buys right now. Don’t ravish your home equity if you don’t need to. Just open a HELOC (ask a mortgage person) and use what you need to put down a down payment and sit on the rest for emergencies (nonpaying tenants…etc.)
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