We can help you! We live and specialize in the Los Feliz /Hollywood Hills area. We also happen to specialize in working with couples who are seperating or divorcing. If you have a time frame to test the market by listing the house and see what type of offers you get. Los Feliz prices have not dropped as much as other areas. Some have actually held their price. It does depend on your location and details of the property. We do have an in house appraiser who would happily give you a rough estimate value of houses appraised in your neighborhood that are similar to yours.
We also have several resources on our website for couples like yourself, who are not sure what they should do. Please visit the site, http://www.MyLARealEstateGroup.com, to get some supplemental infomation.
You can email or call us anytime.
Good Luck to you both!
Lou and Alex
LA Real Estate Group
By just reading your question.
I would sell to break even.
I would keep your girlfriend on the line for the payment.
You say ,it looks like you can afford a interest only 5 year which would include the income from the rental.
What`s the prepayment?
You are walking a tight wire in a wind storm.
You and your ex, Make the payments until it is sold.
Don't let her out of the deal in a crummy market.
Dont buy her out!
You need her income to make the payments.
Just get it sold.
If you can qualify on an interest only loan, you likely cannot afford the house. To give yourself some safety I would try to qualify for a 20% down 30 year fixed mortgage, if you can qualify for that and get it then you can probably afford the property. A qualification for such a mortgage gives you a piece of mind that you are ok. However you must be honest with yourself whether you can or cannot afford it. To me a home close to a 1mil requires a 300K income if you have that you can afford it, if you don't you're kidding yourself.
Cut your losses. The likely scenario for the next few years is a drop in prices. Someone below mentioned a 10-20% correction from here. on 940-980K appraisal (your house is worth what is can be sold for) but let's take your appraisal, 20% drop from your appraisal is ~192K, so if properties drop 20% by the end of this year, that's how much you'll be down, can you handle that, plus carrying costs, etc.
I would say sell it and take what you can get, cut your gains/losses short and be happy until this market shows its real colors.
You are thinking smart here I would consider a 5/1 arm because it would take years to pay off the mortgage anyways. If you wait too much longer you may not have the programs available to you to refi.
I am a direct lender and broker if you need help contact me.
Do not pay principal/int to pay off the loan you are only making the bank more money and not in your pocket. Read the book untapped riches great book!
Just because you two broke up doesn't mean you aren't still business partners in real estate.Time to stop acting as if your mistakes don't matter.
Hold on until the market is better. Rethink the refi position, since any refi will use up lots of $$ in costs up front as well; you'll be deeper in the hole.
Well, you do have a couple of big factors in your favor - the location of your home and your understanding ouf your situation. Yes, summer is over and prime "selling" season is as well, but homes sell all year 'round and homes in areas like Los Feliz where there is a limited supply, not a whole lot of new home construction can behave differently than homes in areas where there is an oversupply for a much smaller demand.
Most people tend to make the selling, buying or refinancing decisions of their homes based more upon emotion than upon a strictly financial basis. I would urge you to base your decision upon upon what makes the most financial sense for you in the longer term.
Here is what I would ask you to decide what might make the most sense:
1) Do you have to sell your home? If the payments that you are currently making or those that you would be making if you refi are comfortable for you then maybe you might want to consider holding on to the home.
2) If you decided to sell to break even and the home does not receive offers that would alllow you to do that, are you willing to or able to take a loss?
3) Is there anything that you forsee changing in your near future that would make the situation you are currently in easier or more difficult? Are you secure in your job? Expecting any promotions?
4) If you decide to sell your home are you willing to listen to your Realtor regarding staging your home and willing to listen to the market with regard to pricing? When I talk about staging, I am not necessarily talking about hiring a company to bring in items, but rather about making your home as showing worthy as possible. As for listening to the market, are you willing to price your home market appropriately?
5) If you don't sell but decide to refinance instead and the value of your home takes a hit, are you in the position to hold on to the asset and continue to pay for the loan acquired at today's value for a long enough period to allow the market to rebound?
And, finally have you decided who you would like to have help you regardless of what your decision would be? If the answer to this last question is no, then please allow me to throw my hat into the ring and offer my services. You are welcome to give me a call to discuss your situation privately in greater detail.
I hope this has been helpful and look forward to hearing from you soon. Oh, by the way, though I currently live in Claremont, I lived in your neck of the woods for ages just before I got married and still have strong ties there.
Tisza Major-Posner, Realtor, Keller Williams Professional Group (213) 392-4084 or (909) 837-8922
Good luck, I wish you the best in a bad situation!
I am estimating a market price correction in Los Angeles. I see figures from 10% to 20% over the coming months. I would echo the suggestions to either sell it now, or do the refi.
If you sell it now, you may not get what you'd like. The market is undergoing a correction so whatever you paid last year, is out the window. I do not know your specific home, however in general anyone who purchased their home within the last two years is probably going to have a tough time breaking even.
That being said, if you opt to hang on to it., you're looking at at least a 24 month holding period, just based on what we know NOW about the market. Once the September sales stats are available that forecast could be revised (read that to mean probably will be).
The bad news is that you've missed the prime selling season. The good news is that rates are going down. So if you re-fi right NOW, you might get a decent rate and still retain enough value to make it work.
The bad news is if you put the home on the market, and THEN try to re-fi it, you might be in trouble.
I strongly advise you to look at all your options, then make your move ASAP.
At least you are not upside down.
Of course you know what someone says the home is worth and what it actually sells for are two different things.
Again I think you are putting yourself at to high of a risk.
Make sure the Ex helps you make the payments until it is sold.
Yes Short sales are no good, however what happens if you end up there. If you owe the bank a extra 20K to close. Wouldn`t you rather pay only 10K.
I am going to guess that your Mortgage is $4500.
Wouldn`t you rather pay $2250. until it gets sold?