Housing prices have generally decreased 20 to 30 percent, depending on where you live.  Due to the uncertainty of selling/buying the 2 homes, you may want to consider how comfortable you are with owning two homes, or you could consider getting renters to your current home.  The rental income will need to be sufficent enough to keep your debt-to-income ratios low when you add on another mortgage payment to responsibility.

Most of important of all, in this market, you do not want to buy before you sell.  Make sure to get a very strong offer on your house before putting an offer on anything else.

Recommended Reading:

• The Complete Guide to Locating, Negotiating, and Buying Real Estate Foreclosures: What Smart Investors Need to Know – Explained Simply

1) Immediately call your lenders if you’re having trouble making ends meet. Don’t wait till you’re knee dip in missed payments. Finding out the correct lender to call may be a small problem as many mortgages are sold immediately after being written. The company you write checks to may only be servicing the loan. Talk to someone who can work out your payment alternatives.

2) If you’re a victim of predatory lending, call consumer affairs department of your state’s Attorney General office and ask for their mortgage unit, if they have one.

3) If the ads or marketing materials for your mortgage didn’t fully disclose the risks involved, the lender may be guilty of deceptive advertising. If you feel that you’ve been mislead, contact consumer affairs bureau of the Federal Trade Commission at 1-877-FTC-HELP (382-4357). If you have a copy of the ad, it would help greatly.

4) If you are an active duty military personnel, you may be eligible for mortgage payment relief and protection from foreclosure under the ServiceMembers Civil Relief Act of 2003.

5) Contact a professional credit counselor. Be careful of scams by avoiding anyone who cold calls you offering help. Get a referral to an accredited debt counselor in your area. You can also get a referral to a counseling agency approved by the Debt. of Housing and Urban Development on their website or calling 800-569-4287. A fee may be charged for some of their services, but they will work with you on finding a solution.

You’re not alone as many others are going through the same process and are consolidating their loan.