Another reader -That makes sense! Looks like we are already on one side of that fence due to our MLS listing. By that logic, banks should be willing to move forward on the assumption that we plan to sell. I found one bank that said if we have a signed listing contract with an agent they can do our DTI without considering the mortgage debt of the house about to be sold. Now, I'll need to shop this strategy around to other banks to compare apples to apples.
You are right on the other point, this would be a non-confirming loan. So now we will see what sort of interest rate they can offer us.
Undercover- We want to do this for the same reason Michael Dell wants to take over EMC:
1. We will be getting the asset under market value.
Unfortunately, we are also facing another set of similarities:
1. We don't have all the needed cash, so borrowing is necessary at this time.
2. We need to rely on investors seeing our value prop to help finance
3. Luckily, we will be part of our own investors....? This *might* be a con ;)
www.msdcapital.com/approach.htmI do appreciate that you've been adamantly against this deal, we are against carrying both houses as well! We were simply looking for a backup plan.