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We bought a house almost 4 years ago for $125k and now it is only worth $77k. We are really wanting to move but not sure what to do about the price difference. We considered renting but don't really want to do that either, don't want bankruptcy, foreclosure, etc. Any ideas or any ideas on what we can do to make our home worth more? Thanks!
Remodeling or other upgrades will raise the value, but outside of that there is really nothing you can do. You bought your home at the peak of the market boom and to see that value ever come back isn't going to happen any time soon, if ever.
It is unrealistic to think you can do enough to recoup almost $50,000 in "lost value" unless your home is in VERY poor condition, is VERY small, can be economically 'improved' to make it far more desirable in your neighbor or has wads of hundred dollar bills hidden in the walls...
If your unit is a condo or townhouse there is even less that you can control. Financial conditions for most such developments make it all but impossible to sell to other than a "no financing" type investor.
You say you want to move but unless you "need to move" it may be unwise to consider taking such a loss.
It strikes me that your home, if your estimate is correct, is now so inexpensive that it may very well be an attractive option for some landlord / investor type.
You say you WANT to move...but do you NEED to move? You only lose money when you sell.
If you need to recoup your money right now, you're probably out of luck. Rent it if you need to move. Let someone else pay the mortgage until the market bounces back. There's nothing you can do to raise the value that much.
We want to move to be closer to our son's school and to work but we don't have to move. It's just our area has gone downhill and we want out. We do live in a house not a condo or anything. Its 3 bed, 1.5 bath, 1800 sq. ft, with an acre yard, and its not in bad shape at all. We are trying to finish the basement and we updated the bathrooms. And this may be a silly question but there's nothing we can do with the banks since there has been that much of a price drop?
We want to move to be closer to our son's school and to work but we don't have to move. It's just our area has gone downhill and we want out. We do live in a house not a condo or anything. Its 3 bed, 1.5 bath, 1800 sq. ft, with an acre yard, and its not in bad shape at all. We are trying to finish the basement and we updated the bathrooms. And this may be a silly question but there's nothing we can do with the banks since there has been that much of a price drop?
If you're asking if the bank will renegotiate? No. Not a chance.
If you want out, rent it. It's not a bad thing. Many folks have lots of good rental stories. You only hear about the horror ones.
Do what's best for your family, even if that means you rent it and then you rent a place closer to where you want to be.
We want to move to be closer to our son's school and to work but we don't have to move. It's just our area has gone downhill and we want out. We do live in a house not a condo or anything. Its 3 bed, 1.5 bath, 1800 sq. ft, with an acre yard, and its not in bad shape at all. We are trying to finish the basement and we updated the bathrooms. And this may be a silly question but there's nothing we can do with the banks since there has been that much of a price drop?
What you are asking about is called a "short sale". It is when you negotiate to sell the house for less than the current loan balance. You should talk to an accountant and an attorney before going that route, because it will damage your credit, as well as that the bank may issue you a deficiency judgment (depending on your state and loan specifics), meaning that you owe them the difference, or if not, there could be tax repercussions on any forgiven amount (which sometimes you can get out of, again depending on your loan specifics). It is not a choice to make lightly if you are not forced into it.
We want to move to be closer to our son's school and to work but we don't have to move. It's just our area has gone downhill and we want out. We do live in a house not a condo or anything. Its 3 bed, 1.5 bath, 1800 sq. ft, with an acre yard, and its not in bad shape at all. We are trying to finish the basement and we updated the bathrooms. And this may be a silly question but there's nothing we can do with the banks since there has been that much of a price drop?
Can you refinance to a lower interest rate to bring you payments down to make leasing it easier?
Unfortunately, your story is way too common these days.
It doesn't sound like you have to move so the best advice is simply to stay. You say the neighborhood is going downhill but what does that mean? Is there now rampant crime in the streets? Has a motorcycle gang moved in next door? Do you feel unsafe stepping outside?
There are steps you can take to feel more secure. Develop friendships with your neighors and watch out for each other. Get an alarm system. Get a yappy dog. Put security lights around your house. If necessary, get a gun and learn how to use it. All fairly inexpensive things.
If your safety isn't at risk, just suck it up, enjoy your home and learn to live with the situation.
I have not heard of a short sale by convenience. I cannot imagine how these folk would qualify for a short sale.
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