Expert: Jessica Bryan - 7/9/2006

Question
Jessica,
First of all thank you so much for your prompt reply.  We have approx 100,000 in debt on our home and 80,000 in cash that we can have access to.  I did not think we would qualify for a loan because we are not working.  If we would that would solve our problems.  Is there anything we should know when going to apply for the loan?  We have considered all of your suggestions, including loading the cats up and taking them for a ride during showings!  Obviously I will do whatever it takes but would like to make it as easy as possible on myself.  And I love your suggestion about having someone come in and give me their honest opinion.  
Thank you again,
Barbara

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Followup To

Question -
Jessica,
My husband is disabled and is retiring because of his disability I retired in November. We have a large house with property (5 acres)in Fl. This is the second house we have owned in 25 years having built the house in 1990, so I have no idea how this works.  Most of our money is in our property. Said to be worth at least 600,000.  We would like to move.  We have pets including a horse.  Although the house is clean and in good repair, (we have spent a good amount of money renovating it) I am concerned that if we are still living in it with our pets and all our stuff it will be hard to sell.  How do people manage this and how do they manage if it sells quickly and they have no where to go?  We do not have the money to buy a house before the sale of this one, and I don't think we would qualify for a mortgage with neither one of us working.  I'm quite sure we would have a hard time renting ( we have 7, yes I said 7 cats.)
Any ideas you have would be appreciated.  I have spent the last 7 months getting the house ready to market and now I'm a nervous wreck.
Thanks,
Barbara

Answer -
Dear Barbara;
I would imagine that you have quite a bit of equity in your home right now.  Before you list this home, apply for an equity loan for the maximum amount you can get. The kind of loan I am thinking of is money that is set aside for your use but until you actually use it you don't pay any interest on it.  Then, when you decide to buy another home, you can use the loan to pay for that home.  You can then move in and sell your existing home.  However, if you are making payments on the existing home that don't allow you to make any additional payments then you have no choice but to continue living in the existing home until it sells.  With so many cats,(I assume they are indoor cats) you will need to be meticulous about cleanliness, odors and fur. If they use a litter box, hide it when there is a showing or put it out in the garage. Many people are highly allergic to cats and if they walk into your home and begin to sneeze they will not see much of the home.  Is there a way you can farm out the cats to some neighbors, friends or family until you sell the home?  If not...can you put them all in one room or in a garage when people come to see the house?  The other thing I would suggest is that you consult with a good friend or family member who will be truthful with you.  Have them look at the house and tell you what items to remove, areas to work on and things that still need cleaning.  It is amazing what we overlook when we try to make the home look presentable.  Another set of eyes is very helpful.  Will you be using a REALTOR to sell your home?  If so, use their expertise and follow their suggestions.

Good luck and best wishes.
~Jessica Bryan
Managing Broker
House to Home Realty Services

Answer
Hello again;
With only $100,000 in debt and equity of approximately $500,000 (I think that you said that your home is worth $600,000) that can certainly help you to get an equity loan.  Call a lender on Monday and talk to them about the possibilities based on your total assets.  Just because you aren't working doesn't mean that you don't have the ability to get a loan.  However, not being a lender, I don't have all of the lending institution criteria in front of me. I do know that it is much more difficult to get a loan when you are not working. You may have to look into a swing loan or bridge loan. Perhaps that will work for you providing you can make the monthly payments. The monthly payments on some programs can be deferred or lowered to interest only while you wait to sell your home.  If not, then you really will have to go with plan B (selling your home  first).
Regards,
Jessica Bryan