So I own a condo for about 4.5 years now. It's still 'positive' so far but definitely came down a lot. My wife and I would like to move into a house about 1.5 years from now and keep the condo for rent if possible.

The question is... If 1.5 years from now the condo value goes 'negative', what would that do to my purchase loan on the house? If it doesn't matter, then I am all set, otherwise I might have to consider selling it. I know it's a crappy market to sell right now, but at least I don't HAVE to sell.

 

With how the feds have handled the economy, i think you'll be in pretty good shape to buy a place if you have the money........because I don't think most people will be able too......

hopefully the government will stop bailing out foreign investors and pretending they are saving our financial institutions when really it's going to cost us billions and billions more in the long run........

people should stop being lazy and get educated so maybe someday we can put a stop to this crap

 

Well, buying the house itself won't be a problem... I am just wondering what would happen if my condo goes negative at the time of my house purchase if I decide to keep it. So you saying there won't be any effect to my purchase loan?

 

The bank will look at what you owe on the condo vs. the market value. Depending on the lender, if it goes negative you could be adversly effected.

This is mainly if the value of the house drops lower than what you owe on the house.

I would say that lots of vehicle loans will be more of a negative in a banks eyes.

If you can get an income/break even over your morgage + tax+ maintinence fees from rent, then you should be gold.