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Apu, Home Seller in Lincoln Square, Chic...

Wait to sell or take some debt?

Asked by Apu, Lincoln Square, Chicago, IL Sun Mar 23, 2008

I bought a condo when the market was ripe - I have a 7 year ARM and have 4 years left on it before I should refinance or sell. I turned credit card debt into equity debt - now the market shows that I may take a hit on sales price to cover total equity debt. Should I consider taking a hit and considering the equity a lost cause as market doesn't appear to get stronger in our area (too much competition!)?

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Apu,
As Ken and Keith said in their posts, if you don't have a serious reason to sell and move, it may be prudent for you to continue to pay down on your mortgage and equity loan. Then, when you do eventually sell, you'll be in a better equity position in this property. Although our market conditions are on the low end right now, it will turn around.
Continue to monitor the mortgage rates. If they drop to a point where you feel it would be beneficial to refinance, you may want to talk to your lender about the options. But if the rate you have now is comfortable- 4 years is a long time, so I wouldn't be overly concerned about urgency to refinance right now.
Thanks for your question
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0 votes Thank Flag Link Mon Mar 24, 2008
try to get a HELOC, max it out, before its too late
lenders are getting real picky about lending money
just because some banks are having some small problems
try to get some more credit cards too, before it is too late

anyways

don't worry
be happy
0 votes Thank Flag Link Mon Mar 24, 2008
Apu,

Lincoln Square has seen good activity over the past 10 years and continues to be an area sought after by a broad range of buyers. Some current projects have taken longer to sell but that's not just a market factor, it's more to do with where they're located (busier Western Ave, Lincoln Ave etc). Those projects will sell as buyers see the value of being located close to Restaurants, Stores and the Brown Line El.
If you sell, what will you buy and at what rate? Will you rent and loose out on future appreciation (existing home sales for Feb were released today and analysts predicted 4.85 million whilst the actual number was 5.03million)? If you can meet your payments and enjoy where you live, stay put.

Best of luck, Ken.
Web Reference: http://www.KDRchicago.com
0 votes Thank Flag Link Mon Mar 24, 2008
Apu
I do not know your market (disclaimer). The real estate markets are local in nature, so it is important that you discuss your questions with a local expert.

Generally speaking real estate markets cycle up and down, just like the stock market. Four years is a long time, so unless there is a compelling reason, selling your property (IMHO) should be the last option. Selling real estate is expensive (in terms of the selling costs) and is complicated and time consuming. I think you'd be better off discussing your concerns with a local Realtor and develop some options.

Most people do not move just for money. Most people move in order to accomplish a greater goal (larger home, smaller home, better schools, job, death, health issues).

Best of uck to you.
0 votes Thank Flag Link Mon Mar 24, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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