Here you are facing with two issues, Emotional and Economical. How much "dislike" are you with the current home? if you stay and stick it out for another few years until the market turn, would that be so terrible? and what is the picture of the bottom line if you sell the house, exactly how much you will loose and are there any other options?. Answer those questions then you should have a clearer answer.
If you want to brain storm on these issues, contact me. http://www.mtranrealtor.com
Since this thread is now a year old, it would be interesting for you to come back and give us a report as to which course you decided to pursue. Some things have changed in this past year - the value of the original house you bought - the subject of this thread - is now probably worth at least 10% more.
And if you rented it out, and went to a better house and rented it, as well - as I suggested 12 months ago - this recent blog post of mine would be a perfect fit for you:
I hope things went well for you - come back and let us know - especially if they did - go well.
Since you had put a large down payment on the house, you can rent it out and cash flow positively on your house. With the extra money you have on it, you can use it to help pay for your rental. Depending on how big of a place you want to rent, you can start saving money now for the next purchase. If your kids are little, see if you can rent a 2bedrm in the meantime and save the money you have for the down payment. Eventually, you'll save enough money and therefore can qualify for another purchase.
By the way, if your house is near PhuocLocTho then you won't have any problems renting it out. The demands in the area is very good for rent.
That might not be the case for Thanhduy, but it is one of THE most important factors in purchasing a house. Even if the house is a "screamin deal!" it should still make sense for your family if you're going to live in it.
You stated in the question that you would rent for a while if you sold your house. By renting yours out till the market gets better, you would get your money back and some one would be helping you pay that rent and the mortgage. I checked and there is no detached houses in Westminster renting for less than $2000 a month.
This is a give and take. You can sell now and take the loss, rent then buy when you think the market is at bottom. Wait till the market comes back some to sell but you will have to pay more for a house at that point.
You can use my web site to check out prices on the MLS. Just sign on and search for what ever you want.
That, my Ohio friend, is a good sign that the decline has slowed here - at least in the lower price ranges - which most of us "pros" take as a good sign.
Personally I can't imagine it being a good idea to sell the house in this market. You mentioned that you were going to rent for a while anyway. Here's a thought. Your present loan is perfect for a couple of reasons. First, if you make your house a rental property the rent should more than cover the payment. ( The other reason is because a lender on a house you buy later has guidelines to follow that require 20-30% equity, which your house should still have.)
Then go rent a while. Find another good REO sometime in the future and make sure that you like it better, next time, and that it meets your needs. You should be able to get an FHA loan at that time, with a much lower down payment, and hopefully with a monthly payment that is affordable.
You should be able to get the $7500. tax credit for 2008, although it may not apply if you move out too soon - I'm not sure. You should brainstorm these and other ideas with a Realtor friend, and with a tax specialist.
Good luck to you in finding solutions.
That is really a personal choice for you. I would ask you to very carefully consider your decision however. I have lived in Orange County the majority of my life and really don't think that you can rent anywhere for less than $1300.00 a month. Don't forget you can write off your home loan on your taxes, but cannot as a renter. Also if you were a first time homebuyer, then you qualify of the $8,000 credit from the government right now, not as a renter. If you don't want to loose all your equity you can consider selling your home via a "land trust," call me for details.
Wright Realty Partners
That is a tricky question. $60,000 is a big hit to take, but iI'm inclined to say that if that's the price you pay for happiness then it may be worth it. At least you'd probably be able to deduct the loss. I'm interested in seeing some of the other resposes