buying a 2nd home while underwater on 1st?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, even IF (big "if") you could somehow qualify for such a loan, it sounds like a very poor idea. Renting out a condo can turn into a nightmare--it's not just an easy way to pay a mortgage.

OP here -Trust me, I dread the very idea of even dealing with renters in our condo... we were just tossing the idea around.

Our friend rents houses and said she has only had one bad tenant in 20 years. She said that everyone has a "story." You have to set financial requirements for renters and only rent to people who meet these requirements. Inevitably people will come to you with a story about something and why it should apply to them. She insists as long as you don't do stories, you are not likely to have issues.

I'm inclined to agree with her. A good friend of mine rented to tenants and was telling me of their story with a recent bankruptcy and why it made total sense, and all I could think was, I know where this is going. And it ended badly.

so agreed. we always run a credit check and call references. we get some tony applicants given location of our rowhouse and some seem almost offended/put-out that we are questioning their finances---but we run a check on EVERYONE---even the guy who was pseudo-famous in the local area. You never know.

[Anonymous]

OP again - these positive stories re: renters are really great. I appreciate it. Our home isn't metro-walkable but it is right next to a VRE station... to me that seems like a pretty marketable attribute but I'm sure we wouldn't pull in the number of applications that a condo in DC or near a metro would... still, great food for thought.

[Anonymous]

Anonymous wrote:OP again - these positive stories re: renters are really great. I appreciate it. Our home isn't metro-walkable but it is right next to a VRE station... to me that seems like a pretty marketable attribute but I'm sure we wouldn't pull in the number of applications that a condo in DC or near a metro would... still, great food for thought.

I rent my Townhouse in Sterling, VA and I can ASSURE you it is not metro friendly. Advertising on Craigs List I have NO problem attracting excellent tenants. Not everyone can afford to live next to a metro.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Regarding credit unions: Having been a member of my credit union for most of my life, I've learned that you cannot f with them. When I was going through my divorce my ex defaulted on the car loan I had taken out for him. They wiped out my checking account, my savings account, and redirected funds I sent to make my car payment to his car since he was delinquent. Then they came to repo my car as cross collateral for his car since my car was worth more than his. Not a position I ever want to be in again. I can only imagine if they were taking away my home to recoup the loss of me trying to bail on my condo.

Good Grief! Are you in the Big Louie credit union? Lucky they didn't break your thumbs.

Well of course they did these things...Not sure why that makes them bad- YOU took out the loan and he defaulted....

Despite the divorce decree stating he was responsible for that loan, I still got taken to the cleaners because he just didn't have any money. Him totalling the car eventually saved me because insurance paid it off. And I didn't say the credit union was bad, just that they don't mess around. They are looking out for the interests of their members and I'm still a member with a 3.250% mortgage.