Real estate transactions can present a multitude of logistical concerns. An Arizona family who owns a home and is considering moving into a new home may face one common issue: the possibility of two residential mortgages.
A family who wishes to move and chooses to sell their current home first may feel rushed into buying a new home before they are ready. In contrast, a family who buys their new home before selling their old home may be caught in the financial bind of paying for two mortgages. It is not an ideal situation to be on the hook for two mortgages at the same time.
Before a homeowner chooses to either buy or sell, the owner should consider the nature of the current housing market. Is it a buyer’s or a seller’s market? In a buyer’s market there are many options for the buyer to choose from, but it may be difficult to sell his current house. In a seller’s market, it will likely be easier for a homeowner to sell his or her current home.
There may be strategies with which an attorney can assist homeowners to facilitate real estate transactions for those looking to both buy and sell. It is possible to make a purchase contract dependent upon the sale of a property owner’s current home, or a sales contract dependent upon the purchase of a new home. Additionally, a bridge loan may provide an option if a family finds itself owning two homes. A bridge loan covers the gap between the new mortgage and the new home’s sales price. A temporary loan, it is intended to be repaid when the former house sells.
An attorney experienced in real estate matters may be able to guide someone looking to navigate the transition between selling their current home and buying a new home in as short and efficient a time frame as possible.
Source: Findlaw.com, “Buying and Selling a House at the Same Time,” accessed April 3, 2015