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New mortgage on different home prior to foreclosure?

So what if I have a mortgage which soon will adjust, and soon will be an unreachable payment in today's economy (with gas prices skyrocketing, soon I'll have to choose between the mortgage or drive to work, and living in a rural community and commuting to the city for work, with no public transportation, I cannot be without a vehicle). Is there any truth to the rumor you can obtain a new mortgage on a different home, without your current home being in pre-foreclosure and without putting it on the market (since it now is worth much less than is owed)?


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Typically, the new lender will check your credit report and see that you have a mortgage with your current lender.  That mortgage payment will be factored into your income/debt ratio and unless you can show that you can afford both payments you will not be able to get the new loan.  Sometimes if you rent the current house then the payment will be offset by the rent income.  However, if the renter fails to pay etc, etc. etc. you will be stuck with both payments, not a good move.  Try to work something out with your current lender, short sale maybe?


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