What isn't talked about much is that more than half of REOs are in very poor locations - backed to busy streets, and so on. People might get so wrapped up in the "deal" that they overlook some basic real estate principles, such as "Location! Location! Location!, and end up paying dearly, with noice or some other nuisance, while is probably the biggest reason the house became an REO.

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.

I recommend holding on to your valuable investment IF you are able to continue to pay the mortgage and expenses on it. You bought it at one of the best times in the history of our recent real estate market. If you can afford not to "like" your property enough to sell, then you should re-consider even investing in real estate because it could earn you a lot of equity over the years if you hold on to it OR it could loose your hard earned money over night. An option for you and your kids may be to really figure out what you like, know your budget, know where you want to live and rent/move to that location and house. Meanwhile, rent your property out and pay a little to have a management company help you collect rent and oversee your rental. The best option is to personalize your new home until you're comfortable with living there with your family and then begin reaping the rewards of your investment. Good luck.

I forgot to say that there are no 4 bedroom detached houses for rent under $2000 a month.

Hi Thanhduy,

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.

Rent4Life, no Realtor Pros have stated that it is a "great time to sell AND buy real estate". In South Orange County, California, however, houses in the price range that the original inquirer stated he is in, are selling quickly, many with multiple offers.

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.

Hello,
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.

My house is 4 beds. the problem is if iI rent it out then I won't have money for the down payment of my next house

You don't say how big your property is but you could rent it out. There aren't too many places you can rent for under $1300 a month so you might get more in rent than your mortgage payment. The difference could give you extra income towards what you would be paying in rent. I'd hate to see you sell and take that a $60,000 hit. Let me know if you have any questions.

Thanhduy,

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.

Good Luck

Joe Homs
Wright Realty Partners
949-625-4533 http://www.joehoms.listingbook.com

Hi Thanhduy,

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