Financing in Chandler>Question Details

Buttercup0352, Home Owner in Chandler, AZ

House is 66% underwater. We can afford payments. Would love advice on best exit strategy?

Asked by Buttercup0352, Chandler, AZ Tue Jan 8, 2013

Hello, and thanks for any good advice! We bought our home for $160K in 2007 and it currently Zillows for $54K.

We have very good credit, no late payments. We are paying about $1000 a month of interest only payments but will need to start paying PITI in 4 years. The home is currently being leased for $800/ month but with property manager and HOA fees we are losing $440 a month. We tried to short sale in 2012 but it was denied. Any factual info/advice/personal experience is greatly appreciated.

Help the community by answering this question:


I would recommend you contact an agent to at least run the community comps for you. With inventory down and property pricing on the rise, it may not be as bad as you think. Plus, I wouldn't put alot of stock in an "Zestimate" from Zillow since they just pull stats from anything nearby, not the specific community. If you'd like me to do so, just contact me. All the best!
1 vote Thank Flag Link Wed Jan 9, 2013
First of all, your Zillow estimate very well could be inaccurate, as it usually is. You should get a market analysis from a real estate professional pulling accurate data. If you truly want out you should seek legal & tax advice as your situation is going to be uniquely your own. You need to know and understand what YOUR financial consequences will be if you sell,rent or walk away. Then you can decide what is in your best interest. Were you denied a previous short sale because you were making your payments? Who was your lien holder? Better question, WHO did your negotiating? An attorney or a real estate agent? It is a different time, I would suggest speaking to an attorney about short selling again as the Mortgage Debt Relief Act was extended until Jan 1, 2014.

Nicole Hamming
Associate Broker
United Brokers Group
1 vote Thank Flag Link Tue Jan 8, 2013
You need to speak to a Realtor ASAP! Zillow is not the place to go for home values. Perhaps there are ways to cut down your expenses - could you self manage? Is your property rented for the best price? Please talk to a professional for help. Good luck.
1 vote Thank Flag Link Tue Jan 8, 2013
Hi Buttercup0352,

Sounds like you have a 10 year interest only loan. If your current loan is owned by Fannie Mae or Freddie Mac, you could have another option, taking advantage of the HARP 2.0 loan program. You could look at refinancing your current mortgage, even though it's underwater, you can still get a great rate on a new fixed rate loan.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS...................Sun West Mortgage USA, Inc. (FN)
Certified Mortgage Planner...........NMLS Company ID: 3277 / Branch ID: 359295
480-422-5095 direct ......................8950 East Raintree Drive, Suite 200, Scottsdale, AZ 85260

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
0 votes Thank Flag Link Mon Jan 21, 2013
I would be happy to help you with your home. I am a very experience short sale agent and have worked with hundreds of sellers in a short sale scenario. More specifically, I understand the complexities of short saleing a rental home with a tenant in place. You can see extensive recommendations on my Trulia profile so that you can see the quality of my work. You can view my profile by clicking on my photo beside my response here. There are many factors that go into completing a short sale successfully and I would be happy to discuss them with you. I look forward to hearing from you soon!
0 votes Thank Flag Link Wed Jan 9, 2013
There are many options short sale may still be an option things change constantly.
However I would suggest before you meet with a Realtor you talk with a good CPA to discuss how different options would affect your financial situation

Your homes should sell quickly at that price
0 votes Thank Flag Link Wed Jan 9, 2013
You should try a short sale again. If you send me your information ( phone and address) I can have an experienced short sale expert contact you in Chandler. Its worth another shot...

Travis Jackson
Century 21 M & M Associates
(408) 316-5954
0 votes Thank Flag Link Tue Jan 8, 2013
Have you spoken with an attorney to get legal advise with what your options are? If not, that is something I would recommend you do. I can provide a list of qualified attorney's that can discuss your options with you.

Please call me and I can share that with you.

Debbie Nieman
Keller Williams Sonoran Living
0 votes Thank Flag Link Tue Jan 8, 2013
A couple things that might help. If you have a basic 3 bedroom+ home $800mo rent is way to low. A value of $54,k seems really low unless it's a 1 bedroom condo? Also, the $440mo in HOA & management fee's seem really high. Can you tell me the size of the home? What the HOA fee is? What the PM company takes? We have a great PM Company that can shave you money. Its called World Class Properties- Call Chris Lopez and tell him you were referred by JJ from Solutions Real Estate.

We are always here to HELP!

John C Johnson "JJ"
Solutions Real Estate
Valley Solutions Team
REALTOR®, Buyer's Consultant
Direct (480) 606-2027
0 votes Thank Flag Link Tue Jan 8, 2013
Zillow is not a very reliable website to view for homeowners. The best way to see what your home is currently worth is to have a Comparative Market Analysis completed. I am happy to provide that to you. It won't cost you a cent and can be invaluable. If you want to send me your address and email I will work on it for you.

Celeste Wolfe, Realtor, Certified Negotiation Expert (cne)
United Brokers Group
(480) 717-7204
0 votes Thank Flag Link Tue Jan 8, 2013
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