Advise Please! (Atlanta, Jackson, Jacksonville: short sales, real estate, renter) - Georgia (GA) - City-Data Forum

DC1909 · 09-02-2009, 11:45 AM

Me and my wife plan on moving to Atlanta(Camp Creek area) next year by the fall in which I will be transfering my job in sales and her in HR management. My only concern is we have a home in jacksonville in which we owe more than its worth at this point. So our options are to do a short sale which is the last thing we want to do(but still a option) or we can rent out our home and have a propety management team look over it or we could wait til the market picks back up which is no telling when it will get back to how it was. We are really anxious to get out of the city of Jacksonville and ready to start fresh in Atlanta but are unsure what to do at this point so I just wanted to hear the opinion from others. Want to know the pros and cons of renting and short sales and is it worth it to stay in a city that you dislike and try to wait it out?

RoslynHolcomb · 09-02-2009, 11:48 AM

Are you moving for a concrete job offer? If not, stay where you are.

DC1909 · 09-02-2009, 01:08 PM

I will be transfering my job in sales and her in HR management. So,yes

RoslynHolcomb · 09-02-2009, 02:03 PM

Okay, sorry I missed that part of your post. I don't think this is a good idea and here's why: in a short sale situation obviously you don't have any equity to buy a new house with. So, you either have to buy with no money down with a higher interest rate and PMI, or you'll have to rent. I've never rented here, but from other posts it would appear that rentals are cheaper these days, but of course, that's relative. I've spent some time in Jacksonville and I suspect that it's comparatively less expensive than Atlanta. And since you'll be in a no equity situation, that's really putting you behind the eight ball. My husband and I moved here last year with a substantial amount of equity and we're just now reaching the point where we're seeing some daylight. It's not great, but it's better than it was.

Unless your company insists you move, or you simply can't make your mortgage I don't think a short sale is a good idea. Besides, I don't think they'll do a short sale unless you're undergoing some type of major hardship. I don't think simply not liking a town qualifies.

As for being an absentee landlord, uh no. I wouldn't leave my house hundreds of miles away with God only knows who living in it. Being a landlord is probably far more work than you would or could do long distance. I think sitting tight and waiting on the market is by far a better option for you.

noah · 09-02-2009, 02:16 PM

What a great opportunity to move to a new city you are interested in and to be able to transfer with your current employer. A few thoughts to ponder. Do you want to keep the home as an investment and become a landlord or just keep it and hope the market recovers fast so you can get out. Being a long distance landlord I can say it can be very challenging and stressful and would never recommend it if you don't want to be in the business or have not done it before. How is the rental market there? Would you be able to cover any difference between rent and what you owe each month for your mortgage, being vacant for a few months, repairs etc. How far under are you? Would it be worth it taking the hit to get out of the situation and be done with it.

Rents are quite low right now but in 1 or 2 years could turn around and be high again.

DC1909 · 09-02-2009, 02:36 PM

Thanks for the replies, As far as the cities compare home cost is more expensive in Jacksonville vs Atlanta, im assuming due to it being in Florida near the beach.My goal would only be to rent it out until the market recovers and I can sell it.I know someone who does property management who will look over the house for me at a cost in which im pricing that with them at this time. From my research with my realtor I could do the short sale but I dont want to take a ding on my credit.My business mindset tells me to stay and wait it out but than it comes down to if im willing to be unhappy in my current location for a couple of more years.

noah · 09-02-2009, 03:09 PM

Whether the market recovers fully is anyone's guess but most predict that it will be easier to sell in the coming years but that home prices won't come up to the highs we saw for a long time. Of course high inflation could change that quickly.

I say go for it. If your not sure why not put your house for rent and when you find a tenant then move. Screen well and put good people in and you'll probably be set for a year or two.

If you could sell close to what you owe and get out owing only $10k or $20k it might be worth it to just take a loan out for that amount and be done. Some markets such as Florida that were so high people are predicting will continue to fall for another year or two so then you'd be in an even bigger hole if your goal was to sell in a year or two.

DC1909 · 09-02-2009, 03:37 PM

I appreciate your feedback Noah, I never thought about the possbility of taking out a loan or even paying the difference of what I owe. I imagine what I will end up doing is renting it out because I dont want to waist too many more years here

MissingATLinFL · 09-04-2009, 12:17 AM

Hello DC1909
I live in Tampa, I moved here with my job from Atlanta, several years ago, I work with companies that do shortsales, you can do one if you are upside down with your home, make less money than you have going out. Check the area where you live, do a seach in your neighborhood and if there are shortsales, then you can see what the average price might be for your home or at least get an idea, the price does depend on the location. Some of the clients say its stressful in the beginning but after they sell the home they are very thankful to have gone through the shortsale. Now a dig will be on your credit for a couple of years, but you will be able to buy again. Be careful of the agent you get if you decide to do a shortsale, some have no idea what they are doing, so do your research. Just a little info, Atlanta is a great city, I miss it everyday, traffic is major. Maybe make a list of the pros and cons of moving or staying. PS. I have more info on shortsale durning the home being forsale and after the sale. I know that many clients make arrangement to pay very little each month if the mortgage company makes them pay anything after the sale. Its late so I am starting to ramble, til later

FromCLTtoATL · 09-04-2009, 02:46 AM

I was stuck with a condo in North Carolina. After eight months on the market with no offers, I got a renter. It's always a roll of the dice, but so far, things have worked out renting the place. My property manager is my real estate agent's husband. So he has a vested interest in making sure the renter is a good tenant.