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Location: Comunistafornia, and working to get out ASAP!
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Need advice
I was wondering if I could get some advice--seeing were on this subject and quite a few people are loan officers, real estate brokers, and experienced consumers. The advice I‘ve read on here has been very good and practical. I would like any ideas or opinions on my situation. What would you do if you were in my situation?
1. We live in California and have been looking to leave for years now. We aren’t leaving because of lack of friends, jobs, amenities, weather, or housing. In California it is expensive to live here BUT one needs to remember there are plenty of GOOD paying jobs which makes it tolerable. We’re leaving for other reasons and really want to get out ASAP. We don’t really want to wait for the market for years on end.
2. We own property in Sacramento, 1.25 acres, has been passed down in a trust. We owe about $75,000 on it and have no other bills, cars are paid off, etc.
3. We have very little cash in a savings, my wife is a stay at home wife, no Children, and my income is about $3000 a month.
4. We had been trying to sell as residential for over a year, and then we switched to selling it as commercial for almost 6 months now and nothing no offers. In this part of California prices have leveled off, homes are up for sale all over, but no one is selling.
I can't tell you about the housing market and what have you as I am not knowledgeable enough about CA... but maybe lower the asking price or offer seller paid closing costs, or offer to hold a second to make it more appealing to buyers in a tough market? Sell it through a lease purchase and hold it as an investment property?
But as far as getting ready to move and buy elsewhere, in your post I noticed a few things that may cause you trouble if you are going to require a mortgage where ever you go. (Yes, I am a mortgage loan officer) You need to get some other moving credit on your report or you are going to have troubles. I know it sounds strange, but the way credit reporting works, and it is a fact of life, you have to have a good score to get a head in life. If you only have one trade line (your current mortgage) reporting every month your score will not go up even if you pay on time every month and over time it will actually go down if you have no other trade lines reporting. Get a credit card, use a little bit each month, buy your gas or groceries with it, pay it every month but leave a little on it, even $5 or $10. Get two even. I know this sounds crazy, but it is a sure way to get a higher or even to just maintain your already high credit score. To obtain a good mortgage, lenders look at several things, but what determines what score you get depends on 1, your credit score, the higher the score, the better interest rate and more mortgage type options you will get. 2. Your prior housing payments, own or rent. 3. Your income, which includes how long you have been at that job or in that line of work, how many jobs you have had in the past two years and your debt to income ratio.
So my advice to you while you are waiting to sell that house is to build your credit while you can. Don't worry about the little bit of cash assets (don't spend what you have, keep saving it!) because when you sell that house, sounds like you will have quite a bit of a cash assets by the time you look to buy something else.
Just my opinion.
I dont know what you need to do, we had to move and our house has been sitting on the market for 5 months in NC, my husband got a great job offer and he didnt find work in NC so we left, well now we are facing foreclosure on the house in NC but through it all we are glad we moved, credit will be bruised but we will recover, good luck no matter what you choose, any Idea where you are going?
I dont know what you need to do, we had to move and our house has been sitting on the market for 5 months in NC, my husband got a great job offer and he didnt find work in NC so we left, well now we are facing foreclosure on the house in NC but through it all we are glad we moved, credit will be bruised but we will recover, good luck no matter what you choose, any Idea where you are going?
Why not rent it out then sell it as an investment property instead of facing forclosure? Just a thought.
Location: Comunistafornia, and working to get out ASAP!
1,962 posts, read 5,196,033 times
Reputation: 951
Quote:
Originally Posted by mbmouse
Why not rent it out then sell it as an investment property instead of facing forclosure? Just a thought.
Thanks so far to all the advice We have lived in this home for over 19 years. We thought about renting it out, but someone said we could not because we would loose the capital gains deduction?
Gregsbabe, we thought of SC or Missouri But not sure yet. Most every state hates Californians even though we are not typical Californians.
Why not rent it out then sell it as an investment property instead of facing forclosure? Just a thought.
We have had it for rent also, no luck, we are trying to do a short sale so we really lowered the price, still no luck, the home market right now for resales seems to be bad no matter where you are.
Thanks so far to all the advice We have lived in this home for over 19 years. We thought about renting it out, but someone said we could not because we would loose the capital gains deduction?
Gregsbabe, we thought of SC or Missouri But not sure yet. Most every state hates Californians eben though we are not typical Californians.
I loved Charleston SC, wonderful city. I have never been to Missouri,I love snow though!! but we are originally from Oregon, where they really dont like Cali's, me I have no problem with them, my best friend is from San Diego, I love visiting there. i was surprised by how much I really like AZ, I did the NC heat and humidity and I will take AZ heat anyday, although the nights here right now are awesome. Good Luck I wish I could be more help, but we didnt have much luck with our house either.
Thanks so far to all the advice We have lived in this home for over 19 years. We thought about renting it out, but someone said we could not because we would loose the capital gains deduction?
Gregsbabe, we thought of SC or Missouri But not sure yet. Most every state hates Californians even though we are not typical Californians.
Capital gains is only if you have not lived in the house for a total of 2 years in the last 5 years. You have this covered no problem!
Thanks so far to all the advice We have lived in this home for over 19 years. We thought about renting it out, but someone said we could not because we would loose the capital gains deduction?
I would check a good CPA on this one, does not sound right to me, but I am not a CPA nor live in Ca.
Good luck and please keep us informed on that answer, I would love to know what you find out.
Maybe Marks what would work is clearing out most of the personal things in your home to make it neutral (storage), repainting in neutral colors if needed, making sure the yards are attractive, bathrooms spotless and up-to-date as much as possible, then offering to pay closing costs and possibly other fees for the buyer. The Capital gains exemption is $500,000 for a married couple, $250,000 for a single homeseller. The only catch is that the home has to be your primary residence for two years out of five minimum it's been owned by you. And when you sell at a profit, although you won't probably be liable for capital gains, you still have to make sure your accountant is aware of the sale and that it's documented in your return to prevent any issues down the road! If the sale price will result in a profit minus the existing mortgage currently owed of at least $200K or more, you won't need to worry about qualifying for a mortgage in Missouri, you can buy with cash. I understand what Mbmouse is saying, and that's unfortunate really, but a fact of life if it applies to you. However, I don't use ANY credit cards anymore, I paid off my car loan years ago, and I bought my home with cash to avoid a mortgage. I have never taken an equity loan, never will, and I don't owe anyone anything. I intend to keep it that way. I don't give a **** what my credit score is at this stage as for me debt is the enemy and having worked for banks in credit cards...I know how consumers are screwed! It's just not worth it if you can keep away from it. Good luck!
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