"The 25%-30% equity rule is only in your same housing market. If you can prove that you were transferred to a new housing market for work you do not have to prove any equity in the previous home now being rented and you can use the rental income to help qualify"    View Post

"If it is your goal to buy a new home in the next 3-5 years then foreclosure is not an option for you. It will destroy your credit for the next few years. Right now FHA requires 3 years removed from a foreclosure and I've heard that Fannie Mae is going to require 5 years. Can you rent out the home you are trying to sell so you don't have to carry both payments until housing prices come back to a point where you can sell it? That is your best option."    View Post