Where to Get the Money

I just read about banks or mortgage companies who are offering "guaranteed sale" deals. The way it works is that if your home doesn't sell in a specified number of months, the bank buys it from you for an agreed upon amount. This way, you are not a "contingent" buyer for your new home. The drawback is that the buying price from the bank is somewhat lower than you might get on the market. But this is something you might want to look in to in your situation.

Actually, K., moving to an apartment may be a good way to start over only because it achieves your first objective (and most important): getting your son to a safe place.

Or, consider these options:

1. If your home has some equity you can refinance (interest rates are quite low) pay off your car and afford an apartment for several months while your house sells.

2. You could rent your house (even if the rental market is saturated) by using a Leasing/Property Management company. They are everywhere and they will take charge of finding renters and managing your home while you are away. I have friend who has done this instead of trying to sell her home in this economy and they are incredibly happy.

3. Moving in the direction of your dreams is the first start ~ once you are both out in the suburbs you may find that it is easier to get what you want.

Also, the suburbs are not all that they are cracked up to be. I live in the middle of Minneapolis - in the city. There is more economic and social diversity here so my working-class kids are not pitted against wealthy kids as a minority. I grew up in the suburbs and if you don't have the income to match the locals, you feel left out as a kid, as the kids around you drive expensive cars, boats and bikes.

What I mean to say is, you may want to research other city neighborhoods as well. Every city has good neighborhoods. Look for a neighborhood with a food co-op ~ this is where the hippies from the 60's & 70's live... they are more community-focused and provide safe neighborhoods for children.

Good luck K.~ you are way more blessed than you realize!

K.,

I am a Realtor in Wisconsin. Talk to your lender and see what they have to offer you. About the only way to get a home while you try to sell yours is a "Bridge Loan", I do not recommend this. You would have two mortgage payments to make and I feel that is not a good idea. I think 6-9 months is a good guess to sell your home. I don't know what the market is like in Milwaukee, but around Janesville/Milton/Edgerton, there are homes that have been on the market alot longer than that.
Let me know what you find out. I don't think there is much you can do except sell your house or bridge loan. Like I said, check with your lender to see if they have options for you.

KimE

K.-
First off, Congratulations on your commitment to your son, his well being and your financial well being. It sounds like you have a very good head on your shoulders and you'll do just fine. You've gotten some good responses so far. The choice to wait to buy until you sell is very smart. It requires a bit more patience, but it will work. Dave Ramsey has some wonderful financial advice on his website or books. He even has a call in radio show where you could run your situatio by him. I would check into programs through reputable banks and just remember, if it sounds too good to be true, it probably is!!! Good luck in your endeavor.

You might be surprised at what lenders are willing to do these days. My family was able to get another mortgage to move into the new place while the old one was on the market, with the lender knowing that the old one was on the market and would sell in less than a year. Lenders are having a tough time of it these days -- I'd say find a very modest home in the suburbs, even a small condo. The location is more important -- you can always "upgrade" in several years when your finances are on more stable ground, i.e., when you pay your car off. Start small and let the lender know you are serious and stable. good luck!

There are bridge loans that can help you in a situation like this. Bridge loans are good if you only need them for a short time. 6-9 months may be pushing it. Anyway, your payment is typically the interest only, so you pay nothing towards principle, which helps keep the monthly payment lower. Once you sell your home, you payoff the bridge loan.

You can look into renting a 2 bdrm flat in a duplex, which is very different than an apartment complex. Wauwatosa has a ton of duplexes! Or you can look into buying a smaller duplex to offset the mortgage costs by having half of the mortgage paid for by your tenants. Get with a good realtor who will help with your research.

Hi, K.-
I understand your desire to move to a safer location. Here's what I'd suggest: Set up a meeting with a local real estate agent (this person could also point you to a reputable mortgage broker). This way, you will get free advice on the housing market in your area. Don't feel shy about asking, say, 3 different agents to determine the value of your current home and tell you what they'd be able to offer and how much commission they would earn once your house sells. Different companies collect different rates. On a purchase as large as a house, the difference between 3% and 6% is thousands of dollars. If I were you, I'd put my house on the market ASAP. Once you have a purchase agreement from a buyer, go house shopping yourself! (You are right-- an interim apartment is expensive and a big hassle!) Also, think of back-up plans. Can you put some belongings in storage and stay with a relative or friend in the short-term? Good luck with getting moved before the start of the next school year! And remember, everything will work out. God has a plan for each of us!

Unfortunately with the market the way it is, the only way to sell the house quickly and get out is the lower the price. Probably lower than you had imagined. We tried to sell our Wauwatosa house for a different reason. We love the area, but the layout of the house wasn't working for us. We had no luck and stopped trying to sell it. We did not want to take a loss financially because we didn't dislike it that much (it is safe here, etc.). Instead we fixed it up as best we could to enjoy it. Now it's ready to sell if and when the market changes. But we love our neighbors and the area. So, lower the house price and figure that you'll probably be buying someone else's house at a lower price that they wanted. Good luck - and check out Wauwatosa!

First and foremost, before you do anything, I'd get pre-approved for a mortgage. Since lenders are tightening up on loan approvals, this is the one thing that will either make buying and selling quickly a cinch or a nightmare. If you're pre-approved, you know already you have money to make a deal if something you like should come up. You also know where you stand financially, and how much house you can get. Good news you're debt free, and have your expenses down to the essentials. If you have a good solid income, despite tighter regulations on who gets homeloans right now, you should do well.

Second, after finding out what you qualify for by lenders, I'd secure a real-estate agent, and have them start looking for both potential buyers for your current house and future homes for you to check out, in the neighborhoods you want to move to. While a real estate agent costs money, in the end, if you want a smooth transition, and less of a wait selling your current home, they can help you find buyers quickly, and get you into homes that would otherwise not be listed in more traditonal places like ads, and online.

If your house needs repairs or anything to make it more sellable, I'd do this before the real estate agent sees it. They can always give you ideas on improving your house's sellability too, but you've also got to sell them that they can move your house. So be sure to give them a good first impression. While "staging" is the hot thing with realtors to move a house, be wary if they start talking about putting alot of money into the house before you sell it. You want it cosmetically presentable but at the lowest cost to you as possible. Your goal is to get the most equity out of the sale of your house to get a good downpayment for your next house.

Considering this is more of a buyers market, I'd put your current house up for sale first, and not even start looking for your new house until you sell your current house. No buying until everything is a done deal. Once again, you will be able to move quickly when you do find something becase you'll have your downpayment and preapproved loan.

From your post, I don't think this is your intent, but alot of people make that mistake and wind up getting stuck with several months of two utility bills, two mortgages, cutting two lawns etc. In short, its a financial nightmare. Don't do it. No matter how great of a house you find, unless you make a contingent offer with the seller and they're willing to wait for you to sell your house. Not too likely, but it does happen.

Selling your house first, before finding a new house in this market will not be a problem in the end. Sellers are eager to offload their houses. So, If you need to move fast, I doubt you'll have many people who won't be happy to accomdate a fast turnaround.. just because of the market. Not to mention there is no shortage of good houses available now.. probably at the asking price you're looking for. There really are lots of great deals. Best of all letting one deal pass you by won't be a loss, especially if you don't quite have your financial ducks in a row just yet. I can't stress it enough, Get the cash from the sell of your house and a pre-approved loan first, and the rest will go smoothly. Best of all you'll have more bargaining power so finding that perfect home in this market will be definitely in your favor. Just have patience and think things through carefully.

Last but not least, check with the local housing and development office and find out if there are any special loan or incentive programs for someone like you. There are lots of loan programs for working moms, and maybe even an urban renewal progam in your area, that might provide special help in the sale of your urban home. If you're a minority, many communities offer special loan programs as well. The real estate agent might be able to help with this, or maybe check with city hall's housing office. Good luck.

You may consider renting out your own house - if you live in a decent neighborhood where you can find a trustworthy person. Or perhaps a college student or two - I would recommend girls only. You would want to have a strict lease agreement, or perhaps if you knew someone who would rent it for the summer until they returned to school, it would give you a few months of solace. You could rent it out for the summer to someone vacationing. We were landlords for a few years and I can send you a contract if you'd like. Or you can probably find one at a Staples or Office Depot - or online. My email is ____@____.com other option is rent to own type of agreement called a Purchase Option. They basically agree to pay you the mortgage + a little extra for 2-3 years and then buy the home. You could always do a shorter term. This type of deal is attractive to those who have not yet established credit - young people or possibly divorced people who got into financial trouble. you ALWAYS want to do background checks & check on their history before renting. Just a few options for you. I would recommend praying about your options and for creative ideas. i don't make big decisions without God's input. (Personal opinion) good luck!

If you are serious about getting out, then you can set the ball in motion by putting your house on the market. I have had several friends who have listed their home lately and then wait for an offer. Their plan is to start looking for a house once they get a closing date scheduled on their own house. If you know your price range and the community you want to move to, there are a lot of houses to choose from. And you should be able to find something quickly. If you don't get a house right away, you may end up in an apartment for a year or two, but at least you and your son are out of the old neighborhood. I have seen this work for others but they have been very patient. I hope this helps.

Don't know your area... but nationwide builders of new homes are sitting with either "excess" inventory called spec homes. Some big ones like Ryland if you buy their home will possibly appraise it and guarantee you they will sell it and the money gotten will mostly apply towards your new mortgage. And today they would be crazy NOT to give it a try! They figure out a worse case and best case for the sale and find a sweet spot to make the sale and you and them hopefully all happy. I have not done this myself but visited enough new home developments to know they do offer this. New homes do have hidden costs like new draperies, blinds, trees, etc. finishing of an unfinished basement can build sweat equity. Also more expensive homes could take even longer to sell now than yours (depending on many factors though) Best of luck.