One option is Rent to Own.
While you are strongly encouraged to talk to a Tax Advisor, here is some guidance to your
Clearly, you cannot take a loss on your Principal Residence and carry it forward. One eats
the loss on a Personal Residence with No Carry Forward of the Losses.
However you can on a Rental property as it is deemed as an Investment Loss. However,
if the Tax rules change in the future then you may not beable to.
Since, you do not want to pay the $8K tax Credit nor ruin your Credit your best bet
is to rent it out and write off the structure. Clearly, iff you exercise a Short Sale or
Foreclosure, your credit does take a hit for 3-7 years
One option is Rent to Own, but the challenge is determining the price today on a
property that will be exercised to close 3-5 years out.
If however, the stock market crashes and the economy and GDP dives, then there is no guarantee
that you may even get $1900 in rents if the market liquifies. Also, if the Tax structure changes and we
go to a Flat Tax structure, the days of write offs will be done.
In the mean time do find out who is holding your loan, this is important.
Do get in touch to discuss further if you wish.
As CJ pointed out, the terms of your loan may prevent you from renting the property, however if the other choice for your lender is a short sale or a foreclosure you may be able to negotiate with your lender to modify the terms of your loan to permit you to rent out the property.
If you cannot afford to rent out your property, you will have to do a short sale, however that will harm your credit and prevent you from buying a house in Texas for at least a few years.
Given the costs to you of either renting the property or doing a short sale, you may want to reconsider whether transferring to Texas justifies the costs to you. Your husband may decide that given the costs to you, it is better to decline the transfer unless your husband's employer is willing to pick up some ar all of the financial costs to you. Some employers will pick up some or all of the costs involved.
Your husband might want to consider negotiating with his employer to have the employer pick up some or all of the costs involved with the transfer, or decline the transfer.
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Wow, not an easy question to answer here on Trulia. First, I would re-evaluate when your husband actually has the transfer in hand. If you updated your home with the tax credit, maybe the spring will bring you the chance to close the gap. If push comes to shove, I would consider renting it. If the cash flow is negative with rent, I would weigh out the potential hit for short sale vs cash flow and make a decision. If your husband transfer, and the house is underwater, you have a legitimate hardship for a short sale. If you rent and try to sell later, you may not have that solid of a hardship.
All ideas but it always best to discuss options with professionals in person. Little details could change the answer. Your loan may prevent renting.
It is wise of you to ask and get as much data as possible in a situation like this, but we are NOT tax experts and as the other realtors have pointed out that is who you need to talk to so that ALL your options are laid out for you.
That is my advice to you, hopefully it will turn out better than you thought. :)
As always feel free to contact me if you need a good real estate attorney.
Good luck to you,
This is too big a decision to decide on the internet.
All the best to you.
Because of the prce change in your home, prior answer could be your best bet. Put your home on the maket after you purchase your home in Dallas. If the home turns into a short sale, which it sounds like it will be, there wll be no. There is no cost for a realtor during a short sale, your credit isn't affected by the short sale whle you are purchasing a home because that is already done. The tax credit question , you will have to save for your CPA. I am currently working on a short sale that sounds similar to this as they have bought else where do to being moved for the job, and working towards letting go of the other home at a loss. If your home is priced right and you don't get to far behind in payments, there may be minimal damage to your credt.
Please call me if you would like to discuss your options.
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