March 11th, 2010
Should I short sell, rent, or foreclose?
My current mortgage payment is $1700 a month. I am moving out of state for work, but I owe about $90,000 more than it is technically worth right now (thank you economy and housing crash!). About the best I can do with renting is $1200 a month. After property management fee, that puts me over $600 in the hole each month.
I also would have to pay $500 initially to start the property management (fees and our city requires a business permit to rent out your house). In addition, if my home did not rent for a month or two or three, I would be paying double each month, as my new rent is $2600 a month (moving from Phoenix to San Diego).
Knowing these facts, being upside down in rent and equity, would it make more sense to take a hit on my credit and try to short sell, walk away and let it go into foreclosure, or rent it for a year or two? If I rent it and something goes wrong (AC unit, fridge, etc.) I will have to replace that out of pocket too.
Lastly, my credit is good right now.
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Filed under: Rent Property
Het klinkt het goedkoopst enkel om te blijven waar u zich en niet bewegen bent. Vind uit een baan op uw gebied, berijd de golf en probeer om de termijnen met uw bank opnieuw te bespreken.
Im in een bovenkant – onderaan niet zeker huis, wat met het te doen. De banken zullen de termijnen en de lengte opnieuw bespreken maar dat is over het.
In my opinion, short sale. My husband got a job out of state for work and basically same situation. We owed $250K but could only sell for $156K. Yeah nice! We contacted a short sale agent through a well know company, remax. Basically, it was a long process, but worth it. If you foreclosure, the mortgage company can come after you for the negative balance. If you short sale, it is agreed upon that the debt is free and clear. Some mortgage companies require you to pay a small percentage back. Ours did and they changed their minds. With the short sale you can buy another home in a matter of time depending on how your credit gets impacted by it. If you foreclosure, you have to wait 3 years to purchase again.
If you short sale it shows up as settled debt. Now on my house, we went into foreclosure because our mortgage company would not accept any offers until or payments were past due. The house went to sheriff sale and we redeemed our property within 1 week so it went on our credit as short sale. Good luck to you! It is a long process but as long as you stay on top of your agent and mortgage company with offers and paperwork, you will get to closing.
Also as long as you sell by end of 2009, you may still qualify for the mortgage forgiveness act which allows you to not have to claim the lost money as income. If this law wasn’t in place, we would have had to pay $20,000. Thank you Bush!