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I certainly do feel for you. We commiserated before. :-)
Like you, I'm back home with the kids while DH works out of state. Our home is on the market. We are not upside-down, but we have made significant price cuts, which is increasing the showing traffic substantially (6 showings in the past three days). Have you reduced the price to your bottom line?
I would avoid doing a short sale or anything else so drastic if at all possible. Your credit rating would take a major hit, making you unable to purchase a home in your new city. Renting could be a major headache, with the costs incurred and burden of managing the renter and maintaining the property. I think you may need to wrap your mind around selling at a loss and paying to get out of your home, or doing the same but with an investor group. Investors are buying up homes all over the country; perhaps yours fits the profile they're looking for in terms of rentability. They probably won't buy it for enough to pay off your loan; you will likely still need to make up the difference.
Yes, the rent would be an extraordinarily cheap apartment for my husband. We would wait it out until we pay down the mortgage or get what we are asking.
Not by a lot. Our agent knows what our bottom line is, and she thinks we need to go $30,000 or more below our bottom line to sell.
At this point, I have given up selling. If it wasn't for the kids I wouldn't be so frustrated. I want them in their new school in the beginning of the year, but it won't happen. I also do not want to be a single mom. It is beyond frustrating when a company asks you to move, with no assistance.
I certainly do feel for you. We commiserated before. :-)
Like you, I'm back home with the kids while DH works out of state. Our home is on the market. We are not upside-down, but we have made significant price cuts, which is increasing the showing traffic substantially (6 showings in the past three days). Have you reduced the price to your bottom line?
I would avoid doing a short sale or anything else so drastic if at all possible. Your credit rating would take a major hit, making you unable to purchase a home in your new city. Renting could be a major headache, with the costs incurred and burden of managing the renter and maintaining the property. I think you may need to wrap your mind around selling at a loss and paying to get out of your home, or doing the same but with an investor group. Investors are buying up homes all over the country; perhaps yours fits the profile they're looking for in terms of rentability. They probably won't buy it for enough to pay off your loan; you will likely still need to make up the difference.
Have you had any progress? We had one couple we thought were definitely into the house. Unfortunately we had just had our heating system checked and whatever the guy did caused it to leak in our basement. I had no idea until they brought it to their agents attention. They wanted nothing to do with the house after that, they thought we flooded. Despite our efforts to show them we have never flooded, and what the cause of the water is, it was enough to shut them down.
We were in the same situation and we rented the property out, it wasn't ideal but if you can hire a property management company to handle everything, and the rent will cover your mortgage, then it's really no hassle. We did that for two years and then finally did a short sale which is better than a foreclosure. But at least we had money coming in that covered the mortgage and wasn't out of pocket until the place was sold.
We were in the same situation and we rented the property out, it wasn't ideal but if you can hire a property management company to handle everything, and the rent will cover your mortgage, then it's really no hassle. We did that for two years and then finally did a short sale which is better than a foreclosure. But at least we had money coming in that covered the mortgage and wasn't out of pocket until the place was sold.
Renting-out the property makes sense and may be the best interim solution. A 'GOOD' Property Manager is more expensive, but, almost essential for a long-distance rental. Renting-out a property long-distance can be a pain... (repairs are difficult to arrange; you don't really know if people are taking care of the house; trying to sell and rent at the same time is a hassle for everyone; and late/unpaid rent is much tougher to collect).
However, if a Short Sale becomes necessary, the owners will (assumed?) already be in a new property and not have to worry as much about the Credit 'hit.' --- (A Short Sale can drag-on for a long time and you wind-up sitting-on a vacant house/mortgage.)
This is the 'sad, but, true reality' of the RE market 'bust.'
Not (underwater) by a lot. Our agent knows what our bottom line is,
and she thinks we need to go $30,000 or more below our bottom line to sell.
Is $30,000 not a lot? It seems like a lot to me.
btw... what does "No luck with Fannie or Freddie" mean?
Has your lender been formally approached for a short sale and that was denied?
What about HAFA?
Quote:
At this point, I have given up selling.
Is the rental market there any stronger than the selling market?
Setting aside the problem expenses that WILL come up (damages, repairs and vacancies)
can/will the house rent out for enough to actually cover your current ownership costs?
If so... an investor *should* be approachable.
If not... then don't be in a hurry to become an out of town accidental landlord.
The net from a sale isn't likely to be any better after two years as a rental.
The question is how much wear it gets and how much less it will be worth.
Last edited by MrRational; 06-25-2013 at 10:26 AM..
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