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Thank gawd for that. Anything will sell eventually, as long as the price is low and you wait long enough.
I chose the alternate method given I bought in 2005. Bend over, grab your ankles and sing a tune while the buyers pay you a lot less than the purchase price.
If I understand you correctly you have the following problem. You bought high and the house is not only devalued but due to fees and the loan modification fees you are 6k away from your original purchase price now. If the above is correct as stated, why would you tell the current tenants your balance? One has nothing to do with the other. Essentially you messed up due to a variety of circumstances and now you want them to pay more than the house is worth? I ask, would you do that?
Get an appraisal and accept whatever they offer you based upon that appraisal. unless they are totally unreasonable and out of the ball park.
Okay. Essentially, I didn't MESS up at all. I was laid off from my job and so was my husband, within 6 months of each other! That's not something WE caused or wanted. Get over yourself.
That was the reason for a loan mod, which was approved due to that reason.
I'm not asking them to pay more.
I love when people don't read a post fully and make stupid comments.
Are you planning to come back to LI and live in the house again?
If not, my advice is to sell, sell sell. Do it privately, not via an agent, and if they are financially qualified (that's the big thing) to buy it from you get it done. Like today.
At least you bought in 2007. If you had purchased in 2004-2005 during the run up you might be facing a $60K loss.
While prices will likely continue to climb, everything I've read says it'll be modest increases for the next few years. If you wait until 2016 the interest rates could also jump a point or two which might impact value and/or qualification criteria.
No. We're not moving back.
Bottom line, since I wrote this post I've learned that this will ultimately have to be a short sale.
It won't matter if the agent who I used to list the house as a rental, helps or not.
I am not gaining anything from the house. It sucks, but it is what it is..
Ohhhh, but this can't be! The Pollyanas on this forum keep telling us how LI home prices have just been going up UP UP!
Sell, and kiss the buyer! It's only going to get worse, as the national economy slides further into the terlit; and as more and more working and middle-class leave the Island, to be replaced by indigents; third-worlders and refugees from the City; and as property taxes climb ever higher. So many people have had to just walk away from their houses with nothing but a big deficit/bankruptcy- consider yourself lucky. Very lucky.
Your balance is only 6k less then what you paid in07/08. There's no chance whatsoever that your tenants will meet that price. Your house must've depreciated a hell of a lot more then 6k.
Doesn't sound like you are in a position to cover the gap. So just keep on planning to rent it out. And save the cost of appraisal. What it appraised for makes no difference. You have to sell at your balance.
Yes, due to the loan mod we were approved for back in 2010, the bank so nicely extended the life of the loan to a 40 year. Adjustable rate starting at 2.625% which currently it went up to 3.625% and will go up to its final cap at 4.625% next year.
The late payments, etc were added from our job loss which made the loan that we had gotten down to $368k from $385k back in 2007, but due to all the fees, it was brought to $397k to start with the loan mod...
Looks like we will have to short sell.
Even if I kept renting it, the taxes are due to go up again.
They are building a brand new fire house in the village of Lindy.. That should make the taxes go up $300 right there. Plus the headaches of finding good, qualifies tenants again ... Will be a headache while being out of state...
I'm sure you realize that the current fair market value of the house, which will be pretty close to the appraisal, is totally unrelated to the price you paid for it in 2007 and the amount you owe on it today. Selling to the current tenant can easily be done without involving a real estate agent and will net more money for you but there is no reason to believe they would be willing to pay more than anyone else for the house. If you paid $500,000 in 2007 and it's only worth $400,000 today, you're still going to need $494,000 to pay off your mortgage - the tenant is not giving it to you.
Exactly. I may have to request a short sell with the bank.
Ask the bank to waive the $25k.
I will not come close to ever profiting from this house in the next 4-5 years from now.. So.. The writing is on the wall
Lol. All us know-it-alls at C-D, and no one recommended a short sale. :-)
Glad you spoke to the right person for that advice and hopefully they can recommend an agent or middle man that is good with negotiating those type of deals with the banks.
Not trying to hijack, but this is related...my friend's relative bought a home during the boom, overpaid for it (even for that market), lost his job, and the house is worth about half. He stopped paying mortgage on it years ago, couldn't come to a solution with bank. He's still living there and collecting rent from two apartments in the house. How's he getting away with this?
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