Seller's house worth much less than paid for, has relocated

[raising3boys]

He MIGHT have a lot of options that he isn't going to share with potential buyers. We just sold and relocated out of state. We had a few options.

The owners MIGHT have a buyout from their relocation company in place. After, they have had it on the market for awhile the company may buy it from the owners.

Also, they might have be able to do a rental agreement.

Another thing, how do you know the OWNER is really hurting for money? Right now, they might not be. The company the owner works for may be giving living expenses for some time. ( Ours did.)

Just because YOU think the owners may be DESPERATE to SELL - they might not be yet because the relocation package was great. ( Ours was)

[NYMD67]

I agree ! People are to quick to assume all right now. People are assuming because someone has a for sale sign in their yard they are going into foreclosure or close to it, people assume that if you are renting a home right now it is because you can't afford to buy one,etc...
To many assumptions without knowing the facts.
We too are in the middle of a relo, the company is helping somewhat,paying moving expenses,helping with temp housing, etc... however, buying our current home is not part of the deal.
We are just built our home about 2 years ago and are looking at potentially a 6 figure loss as well.
We too are doing the responsible thing, we will pay 2 mortgages. We will drain our bank accounts to be sure that our credit remains in tact.
I have posted in other threads about the same thing and of course got all the negative critiques, it is our fault for buying in the peak,etc... again,assuming we bought to make a profit when the truth is, we built a modest 4 bedroom home because we were once again relocated and thought this would be a very long term thing.
The assumptions need to stop.

[NatasNJ]

Assuming is awesome. It is what got the prices around the country 400% higher over a short period of time. What is not to like about assumign. JOKE !!!

[Ann Alison]

What's the problem if he could afford a $850k house? Maybe he only has a paltry $100k in his pocket; that's enough for a down payment on another mansion, right?

[trishguard]

Originally Posted by Reader123

What are his options? He bought the house at the peak, relocated out of state, and now his house is probably worth about 500k after paying 850k. He currently has it listed at 675k. What are his options? It's not listed as a short sale. Are there great tax breaks on taking such a loss on the house? My guess is that his best option is to let it go close to foreclosure and hope he can get one of the renegotiating deals out there, then try to rent or sell it when he owes less. Rent would be a drop in the bucket of his mortgage payment on an 850K house, though.

I guess this house is probably not for us because it is definitely not worth 675k at the moment, but I was just curious what the seller's best options are (and feeling sorry for him!).

I thought you had to live in the home to qualify for any type of refinancing.

[Beena]

Originally Posted by littlefamily

We just sold our house with a 6 figure loss and paid the difference (had to take some on as debt) - no bank short sale. We had to move and it was more important to sell the house and not become long distance landlords. We paid the loss to keep the bank out of it (again wanted to sell quickly, so didn't want to deal with a short sale), wanted to preserve our credit rating AND it was the right thing to do - we owed the money.

Wrote a check at close on my last sale as well. When all is said and done and people finish complaining about predatory lending....you really did sign the docs and you really do owe the money. Rep for you my friend.