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    zuzunoni's Avatar
    zuzunoni Posts: 1, Reputation: 1
    New Member

    May 28, 2008, 07:35 AM
    I Have Some Equity In My House,looking To Refinance To Buy New House And Rent The Old House (this Is In Nevada) What Would Happen After Time If I Could Not Be Able To Make Both Payment And Wanted To Keep The New House Instead Of The Old House. Any Advise Please Thank U
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    May 28, 2008, 07:48 AM
    First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

    Basically both properties are separate. If you default on one loan, that property would be foreclosed against. It will probably not affect the new property, but it would affect your credit rating and the lender for foreclosed property might come after you for any outstanding balances.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
    Junior Member

    May 29, 2008, 08:42 PM
    OK, I don't want to sound rude, so please do not take it that way.

    If you are going to invest in real estate, you need an exit strategy first and foremost. If you don't think you can rent it or get enough to cover mortgage and expenses, etc. don't do it. Seeing that you are in Nevada and that parts are experiencing a free-fall in value makes it even riskier.

    You didn't say how much equity you think you have, but right now, equity is only a thought. You find out how much equity there is when you subtract the mortgage balance from the selling price and expenses.

    I would be very careful doing what you propose. A foreclosure will devastate your credit score and you will be paying for it for a long time.


    PS. Maybe look for a local real estate investment group that you could join. Talk to some of those folks about what property values are doing and see what they think. Can't hurt and may help a lot.

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