Home Selling in Milwaukee>Question Details

Cbm, Home Seller in Milwaukee, WI

I have a dilemna. I have a mortage on my home that exceeds its current market value. I want to sell the

Asked by Cbm, Milwaukee, WI Mon Jun 29, 2009

home. I have rented it out since September of 2008 when I remarried and moved in with my current but estranged spouse. That's correct the marriage only lasted a brief period. I was constructively evicted from the home that my husbands owned; and rented from my sister since my home is rented under lease. I really don't want to go back to my home and I don't want to keep it rented. I will be retiring the end of 2009 and do not and will not have the finances to keep the property up plus pay the mortage. I have a$130,000 mortage; and the City lowered the assessed value by about $8,000 bringing it down to $98, 000. I know that one can add 18 - 25% to the assessed value to get a fair market value. If I do this, I am very close to what I owe. With today's market being what it is, how likely am I to get the fair market value that I want.

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Linda S. Cefalu’s answer
I agree with Keith. You need all the help you can get on the legal ramifications of the steps you are about to take. After you have decided which direction to go, I would be happy to assist you in finding the value of your mom's home or yours if you decide to go that route.

Linda
0 votes Thank Flag Link Mon Jun 29, 2009
C
You have some very good answer here.
Given that you are looking at retirement, I strongly advise you to consult with a financial planner, a CPA, and an attorney. I am not sure I fully understand all of your problems, but I do know that the ONLY people that should be helping you need to know ALL THE FACTS.

That means...your personal situation, including financial and taxwise, your property's market value, and any other legal issues/tax issues that may come into play.
0 votes Thank Flag Link Mon Jun 29, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dear Cbm,

I'm not sure where you received the information about adding 18-25% to assessed value that simply is not true. I work with many first time home buyers in your price range and truly they are all over the map right now. I could not give you an estimate on your fair market value without seeing the home and actually doing a market analysis. I would be happy to help you, but I would need more detailed information. By the way, you can find me on the CDPE website, as I am a Certified Distressed Property Expert. If you have any other questions, I would be happy to try to answer them for you.

Linda S. Cefalu, Realtor,
Remax Realty 100
ABR, SRES, CDPR
Five Star Agent Award Recipient
as seen in Milwaukee Magazine 2008 & 2009
BNI member in good standing.
0 votes Thank Flag Link Mon Jun 29, 2009
The market value is hard to determine with the information you have given. Each area has been effected differently. You have to get an agent to do an analysis to determine estimated value and review the current demand for homes in your area that area. The assessed value is not a good way to determine value, is some markets the assessed value is to low and in others it is to high. After you determine the value, you then should make sure you understand the tax implication because you started renting the property. The issue is something a tax advisor needs to make you aware. In 2007 there was a debt forgiven act for primary residences which foregave the income tax on sales that sold less than the mortage amount. The debt forgiven act does not apply to rentals. So in the mortgage is $100,000 and the property sells for $80,000 there is $20,000 in debt forgiven or income tax needs to be paid on $20,000 of income.

If you do a short sale make sure the person you hire has experience and knowledge of the process. It is a difficult process and need someone to assit you though it. There is a designation called Certified Distressed Property Experts and you can check it out at http://www.cdpenow.com that will identify experts in your area.

Good Luck

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin
0 votes Thank Flag Link Mon Jun 29, 2009
CBM,
I'm so sorry to hear of your complex situation. I would definitely recommend that you have a realtor that is familiar with your area view the home, prepare a market evaluation of what you home realisticallly could sell for in the current market. Make sure you give them all the details regarding your mortgage amount and any other factors that could affect the sale.
Assessed value is just what the municipality uses to collect property taxes. In reality it has no bearing on what the actual market value is. There are so many factors that affect your market value- location, condition, etc. You will also want to make sure that the person you work with is familiar with doing a short-sale, and can help negotiate with your lender should you need to sell for less than is owed.

All the Best to You!
Web Reference: http://GoPackerUp.com
0 votes Thank Flag Link Mon Jun 29, 2009
Speak to a local agent to get an idea what your home is worth. It sounds like it would be worthwhile finding an agent with experience in Short Sales - ie: selling home for less than mortgage held on property. Ask manager of local office to refer you to an agent with this experience. Good luck!
0 votes Thank Flag Link Mon Jun 29, 2009
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