How to buy AND sell a house simultaneously

[Anonymous]

Anonymous wrote:Thanks for the feedback. I'm going to have to explore this process more carefully.

I could probably pay off the existing mortgage outright by borrowing from the IRA Roth and closing out mutual fund. Then when I get the new mortgage on the new house I can pay back the IRA Roth? Seems like I have 60 days to do this.

Having no existing mortgage must make it easier for me to get a new mortgage for the new house.

Op, that looks like a very BAD idea! Be careful to withdraw only contributions, otherwise, 10% penalty fee.

[Anonymous]

Anonymous wrote:This scenario will be coming up in the next few years and can someone walk me through how this happens?

Currently own a house in a highly sought after district, will sell in a day or two irregardless of any economic situation. Am looking to move up. However, will only move when the right house appears. When that happens, I would have to sell current house to buy the next house. How does this work? I'm asking because to put an offer on the next house I would need to have a mortgage lined up for that property. But I already have an existing mortgage. Is this the scenario:

1. Talk to mortgage company and prequalified for a second mortgage that is hypothetically 10% down.
2. Right house comes up.
3. Put offer on house, accepted, and go into escrow
4. Sell current house
5. Close on new house, briefly carrying two mortgages, even if just on paper.
6. Close on old house, pay off existing mortgage, transfer equity balance to new mortgage.
7. Back to just one mortgage payment

Any steps I'm missing?

I'm just finishing up this process very similar to what you described. Something you're missing is that you can rent back to buy yourself time to move everything over and/or do needed renovations on the new house while living in the old one.

And, as a seller, you're in a good position to negotiate to have the rent back period be free, paid by the buyer. This is a good thing to counter offer with when you get an offer you like.

[Anonymous]

We bought our new house, moved the crap out of the old house, and sold it. We carried two mortgages for two months.