You Can Still Buy even if You Haven't Sold

If you have the right credit and the ready cash, you could make
two mortgage payments until your old house sells. Another  strategy
is to take a short-term, low interest Adjustable Rate Mortgage on
your new house that will give you some breathing room while you find
the best buyer for your home. But this is often an unrealistic choice
for homeowners who can't swing two mortgages.

One rather obscure choice is known in commercial lending as a 'blanket
mortgage.' In some cases, a blanket mortgage might help bridge the gap
between your new property and your old one. A blanket mortgage is a loan
secured by two or more properties,sometimes making the loan payment lower
than the total outlay on two or three individual mortgages. The borrower
only has one payment and one closing. Usually this type of commercial loan
is made to developers buying many lots at once. But in this case, it would
combine your present mortgage and the mortgage on the home you want to buy.
When the first home is sold, part of the mortgage would be paid off, bringing
your payments down to where you want them to be. It is possible that the
lender will want to issue a release before the property is sold.  If equity
in the remaining property isn't high enough, a new mortgage (or mortgages)
could be required. Your local bank may not offer blanket mortgage since it
is an unusual way to solve the problem you describe. As with any mortgage,
be sure to check your costs, the terms of the loan, and interest rates
carefully.

I don't usually recommend blanket mortgages that secure multiple properties.
The combined equity in several properties securing the mortgage could be high.
In case of a personal disaster leading to foreclosure, the borrower might not
recover full equity. But, for some buyers with special circumstances, this
obscure financing method could work. Remember to weigh all of your options.

Blessings to your Real Estate Investment Riches,

Milton B. Yates
www.miltonyates.com