Relocation but house won't sell WWYD? (tenant, second mortgage, fees, condo)
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The rent the present house idea is the best as you may not lose any money on the deal. How far away is hubby's new job? If not to far away consider him renting cheap there and commuting until present home is sold or rented.
The rent the present house idea is the best as you may not lose any money on the deal. How far away is hubby's new job? If not to far away consider him renting cheap there and commuting until present home is sold or rented.
Hi, the job is 750 miles away. One thing that makes me nervous about renting is that our property taxes are $500 a month so to cover the mortgage, 2nd mortgage and taxes it would be @$2200. Rentals around here go for @$1500-$1800
I think I forgot to mention it's a 15 year mortgage.
AVA just walk away, it's not worth the hassle. Start a new life, take the credit hit, wait 7 years, buy a new house or don't. My wife and I still own 3 homes.
I had this happen in Tucson, AZ. So it was a bit more severe.
I tried to do every thing right also, but I came 2 inescapable conclusions:
1.) The house would never sell for anywhere close to what we owed. There were 21 other properties priced 20% below what I owed, and to make matters worse there were 15 in foreclosure. 3 months later the numbers of comp houses on the market were climbing and values were dropping like a rock.
2.) Renting was not an option. My mortgage payment was $1161/mo the best I could hope for was $975/mo and like your neighborhood mine was in severe decline. Tightly packed, poorly built DR Horton cookie cutters and no real amenities. The "lawns" were all let go, people started squatting, vandalism was rampant, it got really bad.
Even if I could have rented it for $975/mo its location was unattractive, I would have had to pay property taxes, HOA dues of $88/mo and 7% for a property management firm to take care of it. Never mind if the AC went out or a major repair was required.
We short sold 8 months later at $84,900. I bought it for $189-200k (I can't remember the exact final number) and we owed $162k when we stopped making payments.
Just so you know, I only took a 100 point credit hit. went from excellent to good and because the house was in my name, my wife still had perfect credit. My wife and I never put anything in our name jointly, it's a calculated move so that one of us always maintains perfect credit (my wife).
2 years later I have a great job my wife got us a house when we first got here, I used our sizable savings put a massive down on another house. (long story) and they didn't even blink an eye when told them.
Stop paying right now, save your money up for the move. Have them send you the packet, fill it out, get a short sale specialist to work with, then move. Wait until the whole painful thing is over.
This is what I did, it may not work for you, or you may have a moral issue (which you shouldn't, the valuation was arbitrary to begin with). A friend resolved their problem this way, I followed him and it worked great for me.
If you think you can salvage this, be my guest. But when your paying $5-600 dollars a month to keep a house you no longer care about, it will drain you financially and emotionally, it's not worth it. I had a friend take the high road and rent it out, he paid $500 extra dollars per month, and then when his wife got pregnant and the baby wasn't healthy they couldn't make the payment anyway and the house went into foreclosure. So they paid $6000 dollars to lose the house anyway and have the same exact impact on their credit and they almost lost their rental and had their cars repoed in the process trying to keep that house.
Renting that house, living 750 miles away, will be the worst nightmare you've ever had. Sell it at a loss and move, start your new life. I can't think of anything worse than having a house that far away that you are renting, or hoping to rent. You could come back to a gutted wrecked house, and then you'll have nothing, not to mention the absolute nightmare of it. Sell it for what you can and get out of Dodge.
You have to remember that it's winter and who wants to move in winter? Spring will soon be here and it may be easier to sell your home then. Good luck with the sale and your move!
My husband accepted a fantastic job offer and we will be moving out of state. I have an appt. with a realtor next week. When discussing my situation on the phone, she said I'm definitely underwater with the way prices are now in my area and even more specifically, neighborhood.
Here's some stats
First mortgage $165k
2nd mortgage $59k
So we owe @ $220k
I'll find out for sure next week but I'm guessing it's not worth more than $199k and that's a high estimate.
Any ideas of what we can do? We really don't want to short sale, we've had no problems paying it.
I'll add more details as people need them.
Thanks
UPDATE!
As I've mentioned my husband is being relocated @800 miles away. He leaves the end of March. the kids and I will join him the end of the summer. I had a realtor come over last week and she came again today to give me a comparative market analysis.
She recommended a listing price of $203,100 with $188k to $205k being the range.
I called the second mtg company's loss/mitigation department to see if they would consider settling on a lower price, so I wouldn't have to short sell. They said they aren't doing any settlements at this time.
Here are my choices ;
Short sale- I don't want to do this because I am current on payments and I don't want to ruin my credit.
Pay off the 59k by taking from 401k (wouldn't want to, but we are considering it)
Wipe out savings that we need for the move (company is paying for the move but we will need a cushion, moving to a new state. Plus a child of ours is heading to college in the fall (money is for that as well)
We are afraid that if we pay off the 59k the house still may sit and not sell. We have a 15 year mtg on it so the payment is $1700 (with taxes etc) So after we move we can continue paying for a year or more but not sure we can continue for years on end.
I'll answer any questions to be clearer. Help would be very appreciated! I've learned a lot from going through old posts and from answers in this thread already.
Price the hous low. If you only owe 59K on the house (unless I am not reading it correctly), you can price it to sell. We slashed ours $80,000 to sell, and did within a few weeks. Piece of mind was more important than money for us.
Do not borrow against your 401k. That is a horrible idea. I would do the short sale route. As a last resort, rent it. I think your credit is the least of your worries at this point.
Walking away is always an option, too. Unfortunately with the housing market the way it is a lot of houses are worth 100k+ LESS than what the owners owe on them. Sometimes letting a house go into foreclosure is the ONLY option.
Then ask $199... and be prepared to go as low as your LENDER will accept.
You HAVE had that conversation with your lender... right?
Objective HAS TO BE to sell promptly so you can move on with your lives.
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