Aaron, Other/Just Looking in Greenbelt, MD

We have a 3 bedroom 2 bath rental in Greenbelt MD, mortgage and HOA come to 2400. We are renting it for half of that.

Asked by Aaron, Greenbelt, MD Fri Feb 19, 2010

We bought the condo at the height of the market. Are we better off selling or waiting for things to turn around?

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8
HI Aaron,

if you need any assistance selling or renting it. let me know.
0 votes Thank Flag Link Wed Jan 23, 2013
is your 3bedroom 2bath still for rent if now . I am looking for a agent to help me look for house or some where nice moving from baltimore md I have a pre-approve letter from hud program it;s for people who are disablilty cannot afford a lot my pre-approve letter is for 32,050 I know that;s not alot to work with but I am hoping I can get an agent to help me find a place that's move in ready if there is any agent that will help me fine a place my (mmar108@yahoo.com) or call me at 410-235-4240 thank you Michael Richardson
0 votes Thank Flag Link Wed Aug 22, 2012
Waiting won't do you too much good, as current economic projections are calling for 0% price increases for 2012, 2% through 2013 and 3% through the end of 2014. Read the article here...
http://www.inman.com/news/2012/03/28/economists-see-home-pri…
I'd recommend either holding onto it and continuing to rent - assuming you can absorb the shortfall - or pursuing a short sale and getting out from under it. No good options here, and unfortunately, you're not alone in your predicament...
0 votes Thank Flag Link Mon Apr 2, 2012
If you have other incoming producing properties that have positive cash flows you may want to consider keeping the property for the long term. Over the long term holding the property will be your best bet. If you can't afford to make up the additional payments then selling now or even better in the next year would be your best bet. There is some increase in activity in the market. Don't expect a dramatic upturn. Selling later will always be better than selling now.
0 votes Thank Flag Link Tue Apr 27, 2010
Aaron

I would highly recommend in addition to retaining a real estate short sale specialist, work with an agent that has an association with an attorney to negotiate with your lender. Also you want to work with an agent that can recommend a CPA to work with you because there are some serious tax implications since this is investment property rather than owner-occupied, if you decide to sale for less than what is owed. In this market you don't have a choice but to sale less than your outstanding balance. And if you have more than one mortgage its becomes more complicated. If my team can be of assistant, let me know.

Best Wishes,

Charles Lancaster
Exit Right Realty
240 554 4093
charles@exitrightrealty.com
0 votes Thank Flag Link Fri Feb 19, 2010
as mentioned previously, it's an individual decision. however, you have several options - short sale/regular sale (depending on your equity situation), rental, DIL, purchase option/rent to own, etc. we help folks of all stripes, but particularly those who need a short sale (i.e., they have no equity but need/want to sell). give me a call if that's the path you feel like you would like to take, or visit the website below for more information.

Brian Gormley
Attorney/Broker
Cornerstone Properties and Financial Services LLC
443.739.7993
http://www.capitolshortsale.com
http://www.cornerstonepropertieshomeinfo.com
0 votes Thank Flag Link Fri Feb 19, 2010
Aaron,

From my exprience it sounds like if you sold now, more than likely it would need to be sold as a short sale (when you owe more than the market value). If this is the case, since this is an investment property, the bank would need to be included in the sale as the 3rd party and agree to an accepted contract by you if you found a buyer.

You need to weigh the cost and the amount of money lost in a year's time, against how long will it take to make up that amount of money of lost income until the market turns around. You must also weigh the fact that if you can no longer carry the property and go forward with a short sale, how that will effect you.

Short sale; no more out of pocket money lost
Short sale; bank reports to IRS the loss amount between mortgage owed and mortgage pay off
Short sale; Bank files with IRS a 1099.. you are responsible for taxes on unpaid amount on investment
property.
Short Sale; will effect your credit for min 2 years

Keep the property; out of pocket loss $14,400 yr @ $1,200mo or possibly more if the property is vacant for a couple of months and you pay the entire mortgage.
Keep the property; How long will it take for the market to turn around?
Keep Th Property; How long until you recover your out of pocket expenses?

As a Realtor who is Certified in Short Sales, I have had many recent clients in the same situation you are in and have had very sucessful transactions.This is not the answer for everyone. If you would like to discuss ths further I'd be happy to talk with you about your options.

It is a difficult decision to make and is not the same for everyone. Each person's situation is different from the other. You should also speak with a bankruptcy attorney and an accountant/tax preparer to see ow it would effect you personally.

If you are able to continue paying the difference without a hardship then of course that is best for you, your credit, and the bank. If this is a long term investment, it will eventually turn around.

The best of luck to you
Kathy Dawson, GRI,CDRS,CSSA
Residential Realtor
Certified Default Resolution Specialist
Cerified Short Sale Advisor
410-507-8970
410-451-7600
0 votes Thank Flag Link Fri Feb 19, 2010
Hello,
That is only a question you can answer. I would have an Realtor complete a CMA or get an Appraiser to see what the market conditions hold for you in selling the condo. Every month you are losing a min. $1200.00 a month and that's not counting repairs. Getting the numbers together will help you make an educated decision on what to do. If you can't hold out until your market improves then maybe selling it for a small profit or even a small loss may be an avenue you should explore. if you have any other questions please free to give me a call.
Web Reference: http://www.mikebenton.net
0 votes Thank Flag Link Fri Feb 19, 2010
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