Rent vs Buy in 90703>Question Details

Peaceandpowe…, Real Estate Pro in Bell And Hurd, Paine...

Would it be best to stay in a home or rent out another home if underwater on the mortgage?

Asked by Peaceandpowerparenting, Bell And Hurd, Painesville, OH Sun Sep 2, 2012

Help the community by answering this question:


You can rent your home out these days and buy another with only Half Percent down payment with a minimum 580 fico score on an FHA 30 yr fixed rate 3%-4%. Are you thinking of moving out of the area or into a bigger house in the same city? We can give you options.
Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
0 votes Thank Flag Link Sun Sep 16, 2012
Just being underwater does not mean the world is coming to an end. Are you making the payments? Are you falling into debt or just upset because the house is not worth as much? I had a house in 1992 that was worth less that I paid for it but I kept it and in 2006 it was worth 3 times what I paid and today it is about 2 times what I paid so things work out in time. If you can hang in, then do so.
0 votes Thank Flag Link Sun Sep 2, 2012
This is a question you should ask your financial adviser. There are going to be negative ramification you'll have to deal with should you walk away from your mortgage. I don't know the Cerritos market well enough to comment on how it's doing, but my guess is that like most markets it will in fact rebound over the next few years and if you can afford to remain in the home it may behoove you to do so/ If you walk away it's going to be a long time before you'd be able to get another mortgage so you'd be forced to rent for many years.

Really sorry you find yourself in this position and hope that whatever you decide to do things work out.
0 votes Thank Flag Link Sun Sep 2, 2012
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