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I am relocating to another area due to a job transfer. I am going to short sale my home as I owe more money than it is worth. I want to purchase another house in my new state but cannot do so until the first mortgage is gone. Is it possible that I will be able to get a home sale contingency on the new home even though I am selling as a short sale?
The problem is not whether or not a Seller anywhere will accept a home sale contingency, the problem is if you short sale your property you will not be qualified to purchase another home. I have heard different ranges but it seems that it will be 6-7 years after the short sale that you will then be able to purchase if all other credit issues are good. The only way to avoid this is to bring money to the table and pay the mortgage on your current home in full at settlement. It would then not be considered a short sale as the bank would be receiving what is currently owed on the property.If you are able to do this then yes you would want a home sale contingency on the next property. I cannot tell you whether or not a Seller will accept this. I do advise my Sellers not to except these types of contingencies unless there are special circumstances or if I feel that house the buyers have to sell is priced correctly and will sell in a short amount of time.You will have to consult with the Realtor where you are relocating and gain their thoughts and advice on the situation as they will know the area much better than I would and what is customary in that particular area.
When my husband and I purchased our home 5 years ago we were told that we could ask the bank to remove the monthly PMI. Is there a process to this or do we just call them? We purchased the house with an FHA mortgage putting the minimum amount down.
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There is a process to eliminating the PMI (Private Mortgage Insurance) monthly premium. I would first contact a local Realtor who knows the area well and ask them what today’s market value of your home is. This will be important to know as the bank will perform an appraisal to be sure that you have 22% equity in your home.
You state that you put down the minimum amount you could which I assume 5 years ago was 3% with FHA. (The current minimum down payment with FHA financing is 3.5%). That would mean that your house would have needed to appreciate 19% over the past 5 years. The bank will also want to make sure that you have made all of your payments on time. I would take the first step and discover what today’s market value is. If you find that there is an appreciation that will provide you with 22% equity in the home then call the lender and start the process of removing the PMI. PMI now continues through the life of the loan and will not be removed unless you refinance the property with a conventional mortgage
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My Realtor is hesitant to put up directional signs due to them being taken by the Township. Is there a rule against directional signs? I live on a rarely driven street and no one will know my home is for sale.
It depends on the Township or Borough where you reside. Many townships/boroughs do not allow directional signs. Some will simply remove them, others will fine the person who put them there. There are other ways to guide buyers to your home such as extensive advertising especially on the internet. This will help guide potential buyers to your home. I agree that directionals are very important when selling a home. It would be great if the township would allow them to perhaps go up on Friday and be taken down on Monday. But at this time they do not. Many will put up directional signs and take the chance that they will be taken others do not take that risk.
