Okay real estate guru's I have a question for you....
I am going to be relocating, my house has not sold as of yet, but one of the houses on my short list has decreased the price by 25%! The house has been for sale for 8 months, vacant for over 5 months, the owners have moved out of state, and even with a 25% decrease from the original asking price, they are realizing more than a 300% profit over the original selling price, and they just want it sold!
Now the question....should I take out a loan against invested retirement assets and buy the house with minimum down (say 3%), finance it at one of the crazy loan rates they offer (like one of those 1 year ARM 1% interest only loans), and just move. Or, should I hang tight, leave the assets where they are, and go the traditional route?
I ask because I would have to take out a large enough loan to cover the second house payment during the time period it would take for my original house to sell. I would use the proceeds from the sale of my house to pay back the loan, but would there be tax implications, or any other hidden issues that I would incurr due to the loan scenario?