Please feel free to contact me if I can be of any assistance. My partner and I work in this area and have experience in closing short sales. He is also fluent in Spanish.
Marie J. Montgomery, PA
12751 S. Dixie Hwy
Pinecrest, FL 33156
Yes, your other option is a short sale, but if you can cover your expenses, and not take the hit to your credit, best to avoid it. It becomes a much harder choice if you can't cover your expenses.
In a nutshell you can rent it out and hope the market returns in the future, you can sell the home and write a check for any shortfall or you can list the home for sale as a short sale.
The short sale option carries with it several ramifications you need to be fully aware of. It will affect your credit, your capacity to obtain another mortgage in the near future and you may be financially responsible for some or all of the deficiency depending on the lender(s) involved.
If you pursue the short sale become fully informed, consult an attorney and only hire an experienced short sale agent. Someone who just took a class on short sales, but never closed one may not be your best choice.
As has already been suggested here, an option that you may have is to rent the home and see where the market goes as it relates to pricing. This is clearly not going to be an easy decision for you to make as the choice you make will have different affects on your life. Renting is a great option when you properply screen a tenant, but with that choice you then have to ensure you are receiving the monthly rental in order to cover the mortgage, insurance and property taxes. Keep in mind that the property taxes would go up, as this would no longer be your homestead property, which you will want to factor in your rental amount. As an absentee landlord you will want to also ensure that you have someone local that would be able to take care of any repairs or items that need to be taken care of for the tenant.
If your decision is to sell it as a short sale, I do agree with Dan in that you will want to work with an agent that has had actual experience in closing short sales. Working on short sales does take additonal time that a conventional sale does not and does require an agent that know how to work with the bank on getting all documentation in to them in the way that is requested. Not all short sales are the same, seller circumstances are different, lenders are different, this is where experience is vital to guide you through the process.
Before making the decision to short sale your home, you will want to consult an attorney as well as a tax advisor to know what possible issues you may have to deal with. You want to know upfront what you may have to deal with. Depending on the difference between what you owe and the current value of your home, you will want to analyse how long it would take to then be on the upside of value in relation to the current mortgage balance.
Good luck with your search for information. Please feel free to contact me if you have any questions on this matter. I do work with accountants and real estate attorney's that can provide you with the information you will need to make your decision. I have been doing short sales for the past 4 years and have been sucessful in getting the transactions closed for my buyers and seller.
RE/MAX Advance Realty
Ada Sanchez, CDPE
Pacific Atlantic Realty Services Inc.