Hello:
I`m 25 years old and have just gotten my ass-kicked in a real estate deal that started last June. I`ll try and be as specific as possible, and any advice you all can offer would be hugely appreciated.
I bought my first property in Calgary back in 2005, a couple months before property values in the city began to skyrocket which thus resulted in me riding a wave of huge capital appreciation (along with essentially every landowner in the city). It was awesome! In early 2007, I sold this condo and invested the proceeds into another condo, but this one was basically brand new, never lived in, 2 bedrooms (my prior one was only 1), and an amazing view of the downtown core from the 13th floor with a wall of floor-to-ceiling, 9` windows. A beautiful place to be sure.
Then comes June of 2007. For whatever reason, I get this itch to purchase an inner-city home. I see one I like, make a low offer, which is subsequently accepted. So now I have a house under contract and it`s time to do my due dilligence. The next day, I get a call from the agent saying that there was another offer on the house for "substantially more" than what I got for it, and since there were still conditions outstanding on my purchase, I had to make a decision to either waive all the conditions, or drop the house. In a decision that I`d later regret greatly, I chose to waive all conditions.
One of those conditions was the sale of my condo, which, given that I had about 90 days for it to sell, I didn`t feel it would be a problem getting the job done in that time. Boy, how wrong was I. There were a ton of showings, and finally an offer after about 2 months which I accepted. All seemed to be well, until I was given notice that the buyer was backing out at the last minute due to one of his conditions being the ultra vague "subject to my lawyer`s approval". So now, I was screwed.
Also, once the conditions were waived, I had to come up with 15K as my final deposit within one day, which meant that it had to come from a credit card. This is where my once strong personal balance sheet begins the crumble. The condo continues to not sell over the last month, carrying costs continue to increase, and finally I decide to rent out the condo.
Throughout all of this, I`ve been dealing with mortgage brokers who`ve been setting up packages for me for the many "what-if" scenarios that could`ve happened throughout this. All of these inquiries on my credit bureau and the high credit card balances have really brought down my credit rating, and as a result I need to accept a "blanket mortgage" at a ridiculously high interest rate to account for what would`ve been my down payment from the sale of my condo (which never happened).
So now, I basically have 150K in equity, but due to my low credit score I`ve been told that I can`t refinance everything to get 1 mortgage on each property instead of 3 mortgages in total. I am currently the epitome of "house rich, cash poor" and I don`t know what to do about it. The Calgary real estate market continues to be driven by fear, and my condo has now been listed for about 2.5 months, and I`ve listed the house as well, which has been on the market for about 1 month. Lots of showings on each, but still no offers.
I`m really running out of money here. I appreciate the time you`ve taken to read this and any advice you all can offer. It`s this second mortgage that`s really bleeding my dry. I do have a good education, stable job, and decent income, but my credit score has taken a huge beatdown from all of this and I don`t know what to do.
I`m 25 years old and have just gotten my ass-kicked in a real estate deal that started last June. I`ll try and be as specific as possible, and any advice you all can offer would be hugely appreciated.
I bought my first property in Calgary back in 2005, a couple months before property values in the city began to skyrocket which thus resulted in me riding a wave of huge capital appreciation (along with essentially every landowner in the city). It was awesome! In early 2007, I sold this condo and invested the proceeds into another condo, but this one was basically brand new, never lived in, 2 bedrooms (my prior one was only 1), and an amazing view of the downtown core from the 13th floor with a wall of floor-to-ceiling, 9` windows. A beautiful place to be sure.
Then comes June of 2007. For whatever reason, I get this itch to purchase an inner-city home. I see one I like, make a low offer, which is subsequently accepted. So now I have a house under contract and it`s time to do my due dilligence. The next day, I get a call from the agent saying that there was another offer on the house for "substantially more" than what I got for it, and since there were still conditions outstanding on my purchase, I had to make a decision to either waive all the conditions, or drop the house. In a decision that I`d later regret greatly, I chose to waive all conditions.
One of those conditions was the sale of my condo, which, given that I had about 90 days for it to sell, I didn`t feel it would be a problem getting the job done in that time. Boy, how wrong was I. There were a ton of showings, and finally an offer after about 2 months which I accepted. All seemed to be well, until I was given notice that the buyer was backing out at the last minute due to one of his conditions being the ultra vague "subject to my lawyer`s approval". So now, I was screwed.
Also, once the conditions were waived, I had to come up with 15K as my final deposit within one day, which meant that it had to come from a credit card. This is where my once strong personal balance sheet begins the crumble. The condo continues to not sell over the last month, carrying costs continue to increase, and finally I decide to rent out the condo.
Throughout all of this, I`ve been dealing with mortgage brokers who`ve been setting up packages for me for the many "what-if" scenarios that could`ve happened throughout this. All of these inquiries on my credit bureau and the high credit card balances have really brought down my credit rating, and as a result I need to accept a "blanket mortgage" at a ridiculously high interest rate to account for what would`ve been my down payment from the sale of my condo (which never happened).
So now, I basically have 150K in equity, but due to my low credit score I`ve been told that I can`t refinance everything to get 1 mortgage on each property instead of 3 mortgages in total. I am currently the epitome of "house rich, cash poor" and I don`t know what to do about it. The Calgary real estate market continues to be driven by fear, and my condo has now been listed for about 2.5 months, and I`ve listed the house as well, which has been on the market for about 1 month. Lots of showings on each, but still no offers.
I`m really running out of money here. I appreciate the time you`ve taken to read this and any advice you all can offer. It`s this second mortgage that`s really bleeding my dry. I do have a good education, stable job, and decent income, but my credit score has taken a huge beatdown from all of this and I don`t know what to do.
