1 - Sell at a loss and come out of pocket with the difference.
2 - Sell as a Short Sale and the lenders take the loss (You must have a verifiable hardship)
3 - Keep the home till it appreciates to the loan balance
4 - Get a loan modification from Hope Now - http://www.hopenow.com/ HOPE NOW is an alliance between HUD approved counseling agents, servicers, investors and other mortgage market participants that provides free foreclosure prevention assistance.
5 - Let the home go into Foreclosure
6 - Rent it out.
It would help to know more about your situation but I would agree with my collegues recomendations so far. The one thing I would add is try to get your expenses under control as best you can. Shop at the wholesalers( Sams Club, Costco, etc.) instead of the retailers. Look at alternative service providers for phone, television, etc. Conserve utilities (its fashionable to be " green" these days).... and tough it out in your current house if you can. You need to run your household like a business; when businesses see there bottom line dwindling they cut costs and optimize on the things that bring them revenue. You are living in one of the most desireable places in the world to live; this market will come back., its a question of when.
If your having mortgage problems that's one kind of question with a variety of advice, opinions ect..
If you are asking because you are thinking of selling, you'll get another variety of advice, opinions..
If your payments are affordable and you like your home, then the declining value will get you another set of opinions..
Just thought I'd suggest that if everyone knew exactly what kind of help you're asking for you may get some good feedback on that specific issue..
Good luck, Dunes
There are certain things we can contol some we cannot, falling prices cannot be controlled
however you can make sure to price your home in a realistic manner so you can get the most
money at the current time, also if you have upgrades in your home like new kitchen, bathrooms,
AC or Roof all these factors add value make your home more desirable from the competition.
I can help you better if I saw your home, please feel free to call me at 561-445-3818.
Maria Ahmad - REALTOR,CNS,CHMS
Your specialist for life!
9858 Clint Moore Rd C - 124
Boca Raton, FL - 33496
1. Negotiate a short sale with the bank
2. Hand the house over with a deed in leiu of foreclosure
3. Sell the house and bring the cash balance to closing
Of course there are credit implications with options 1 and 2. If you have any questions please contact me at 561-929-0428
Re/Max Complete Solutions
You see, in America, there is a solution to ANY problem!
For you, the solution is to "Buy 'n Bail"! It's today's Fix 'n Flip!
Remember, with under-the-bus capitalism, you can privatize profits and socialize losses!
So don't get thrown under the bus!
So many people are asking themselves the same question...but the reality is the housing market is what it is. You didnâ€™t specify whether or not youâ€™re intending to sell but if thatâ€™s the case, base your decision on the balance of your mortgage vs the todayâ€™s value. If youâ€™re going to be upside down, then wait â€“ donâ€™t sell yet. However, if youâ€™re in a situation where you MUST sell then consider getting some help right away. Some resources you might look into in your area:
An on-line intake form is no available to help Floridians avoid foreclosure. The Florida Attorneys Saving Homes program is available call 1-866-607-2187 to get the details. Or go to their homepages at http://www.floridabar.org (under Public Information).
Thereâ€™s also the HOPE NOW helpline (see links at the bottom) the U.S. Department of Housing & Urban Development â€“ where you can talk to a counselor about your situation and get help. Itâ€™s called the Homeowners Hope Free Hotline at 1-888-995-HOPE. They serve as liaisons between counselors, services, investors, and other mortgage market participants to maximize outreach efforts to at-risk homeowners and help them stay in their homes.
Our best to you,
Chris & Maria Jeantet
As long as this situation is not creating a financial hardship the best avenue is to wait it out. You are truly not alone in this situation. Everyone financing their home during the height of the market is suffering the same demise.
If a financial hardship is at hand, you should open a dialogue with your lender and explore your options.
The Eckler Team
If you paid $240K, and now it was worth $379K, you would be fine, right? Real estate markets, just like the stock market, goes up and down. Most markets, like yours, are strong buyer's markets, so the only people selling are people that need to sell.
When I talk with a homeowner like you, I ask them these questions:
1. Why do you need to move? Why is it important to you?
2. Do you have any alternatives to moving?
3. Do you need to sell your current home in order to move? Note that I did not say "in order to BUY your next home". If people really need to be somewhere for a very good reason, than at some point other matters, like living in a home that they are buying, as opposed to renting, become non-issues.
Many people are being forced to re-locate for employment or family reasons and are having to become accidental real estate investors (my family went through the exact same scenario) and end up renting a place to live.
So in a buyer's market don't sell unless you absolutely have to sell. In order to have a lender agree to absorb a significant loss you'd have to have an awfully good reason and be insolvent (unable to pay your bills). Most people do not fall into that category. Death of a spouse, divorce, medical bills, are the things that normally get people to the point where they are financially devistated.
Assuming that you are not, that you need to move for other reasons, I reflect on my experience. You need to talk with a CPA about the tax consequences of owning rental property and no longer being able to call it a personal residence. Ask them what the impact will be NOW, and when you finally sell it (if you ever do).
On the bright side owning investment property is a great way to add to your retirement program. For the first couple years that we rented our home in Portland, it was tough. Eighteen years later, when we sold (never should have sold...that is one of the reasons I got my license...to prevent other people from getting into the same mess I did). We made a lot of money, saved money in taxes, and in the long run it was a great investment.
Right now when you are contemplating moving and not being able to sell, it can be pretty stressful. Also, talk with your Realtor about investment property. Find out how much rent you could get if you did rent it out.
Hope this helps, post more if you need to.
IF you like were you are living, and even if you don't, it's a home, warm or cool place to live that gives you utility value. This is Florida, property value goes up and down and right now it is DOWN! So as long as you do not have to move, think of it as rent- you are paying X dollars to live there and no payment is going to retire debt. Its a state of mind. Later when things turn around (2010, 2012 or so) your value will grow to meet your loan, then things will look better.
I'm sorry for your difficulty. I think Dennis has covered your options quite well. He gets a thumbs up from me. However, other than the home's current value, do you think any less of the home since you have moved in? Has it provided all that you had hoped for, other than price appreciation? Your paper loss at this time, doesn't become a real loss until you sell. At least contrary to what has happened in the stock market, your home is providing a roof over your head and protection from the elements. Those that bought Lehman Brothers stock among many others are not enjoying the same benefits your home is giving you. Good luck.
It may be of little consolation, but - many people are "upside down" with their real estate holdings. Most people that bought with typical down payments of 10-20%. are in similar stuations, some better some worse.
A loam modification would probably bring little to no relief. The repercussions of a short sale may not be to your advantage.
Renting out the property may be the worst choice- from my experience, the rental income most likely would be 50% of the carrying costs.
You do have a few choices, unfortunately not any of them are great.