Emily, Both Buyer and Seller in Las Vegas, NV

2 years ago I bought a home in las vegas for $240k (0% down) now it is worth $140k! We want to move out of

Asked by Emily, Las Vegas, NV Sun Mar 30, 2008

vegas within three years. Even if the housing market improves by then I highly doubt our house will be worth more or equal to our loan. So what do we do? Short sale or foreclose now or wait three years and do it then because we need to move? My husband and I have excellent credit so of course we don't want to do either of the above but I just don't see what other options we have. unless we come up with $100k!!! Anyone have any advice?

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Emily, don't panic yet. While no one can predict the future, I personally think the housing market is going to come back a lot in the next three years. They are actually predicting a housing shortage again by 2010 after all the new mega resorts open. It is expected that opening MGM City Center, Fountainblue and Echelon is going to put over 100,000 new jobs in the city! This is a link to a blog article I wrote in early February of this year quoting the owner of Focus Group that there will be another boom.

http://las-vegas-real-estate-experts.blogspot.com/2008/02/bu…

Since that time, two major residential developments, Inspirada and Kyle Canyon, have been experiencing difficulties in financing and may not be nearly as built out as as anticipated. With all those jobs being created, there will be a pent up demand for housing that will hopefully alleviate the worst of the depreciation you have seen on your home.

In the mean time, your most valuable asset is your excellent credit rating and fortunately affordability does not seem to be an issue with your current mortgage payments. (That alone would disqualify you for a short sale. You have to prove you cannot afford the payments, that you have no other assets at all, and that circumstances beyond your control put you in this situation. A declining market does not count as a circumstance beyond your control.) If you do go through a foreclosure, not only will that affect your borrowing power in future years, the banks, if they think you have the assets, have the right to go after you for a deficiency judgement to repay the money .

Personally I would tell you to stick it out, hope the market recovers quite a bit, and save some money in case you need to make up a short fall. While this is not an attractive short term option, I feel it is the best one in the long term, and that 10 years from now you will be VERY glad you chose that course of action rather than go through a foreclosure that could conceivably haunt you for the rest of your life. If you have extra assets that would allow you to purchase a property, why not buy one of the ones in your neighborhood if they are going that cheaply?! That way you could rent it out without having a negative cash flow and still take advantage of the future appreciation. (Actually if you live in a neighborhood where the houses of your size are going for $140k and renting for $1200, I would love to know where that is so I can buy a few!)

A question, have you actually had an experienced agent run the comparables in your neighborhood rather than just relying on an online search? While fun to look at, those are not truly accurate. If you go to http://www.greatlasvegashomes.com you can register for a free market analysis that will give you better information.
4 votes Thank Flag Link Wed Apr 2, 2008
Hi's right.

I'll be honest, though. I just don't understand your underlying logic. You bought a house at the top of the market for $240,000 and now it's worth $140,000. You "want" to move out of Vegas within 3 years. You and your husband have excellent credit. But you're concerned that when you sell that you'll still be upside down. So you want to "bite the bullet" now, rather than later. Is that about right?

But then you go on and say: "Good thing about foreclosing on our home and buying a new one is we could get a lot more house for a lot less money and have a hope of earning equity on our home." Just as the old commercial on TV went ("I'm not a doctor but I play one on TV"), I'm not a judge, but let me play Judge Judy for a moment: Accept some responsibility. Be an adult. You made a dumb move buying in one of the most overheated markets at the top of the bubble. And now it's time to pay up. And apparently you and your husband can do that without great difficulty. You just stay there, pay your mortgage on time, just like you promised you would. You don't lose the house. You don't injure your credit. You don't make the lender pay for your mistake. Do NOT stick the lender with a $100,000 loss, then try to rebuild your equity on another property. I don't like Vegas and I'm not keen on gambling, but I've seen too many people on a losing streak figure that the next hand of blackjack, or the next roll of the dice, is going their way. You tell me: What's the usual outcome?

So, worst case scenario: You stay in your property. You make your payments. You live up to your obligations. And in 3 years you're still upside down. Probably by not as much. That's better than deciding after the fact that you made an unwise decision in your purchase, and walking away from it.

The alternative is to wreck your credit for 10 years. You said you wanted to move in 3 years. How'd you feel about being stuck in Vegas with lousy credit for another 7 years after that? Not a pretty picture.

Someone mentioned renting, and you presented numbers regarding the negative cash flow. There are ways to close that gap. You could do a tax lease, or use a land trust to accomplish the same thing as "rent to own." In both cases, you'd be able to pass the tax benefits on to the resident beneficiary. Thus, depending on their tax bracket, you might be able to charge $1,800 a month, and their net cost (after tax benefit) is only $1,200.

There are a number of ways to deal with your situation. Walking away is not one of them.
5 votes Thank Flag Link Mon Mar 31, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Hi Emily,

A few things about your situation and would agree with some other things mentioned here. Using listing prices in today's market isn't necessarily an accurate way to determine property value. You should use actual sales. There are many short sale listings priced below market that either may not be accepted, or have sales above listing price. There are also REO's in the mix that may also come in above asking, or in need of repairs that keep them below market. Obviously these properties have an effect on those that absolutely need to sell today, but that doesn't seem to be your situation.

The question is... how many of those homes will be on the market in 3 years? There's no crystal ball to specifically answer that, just as many others that purchased didn't imagine there would be a drop in home values 2 years ago. There are those analysts that are predicting a housing shortage in Las Vegas by 2009, due to all the hirings from the $30 billion construction boom, just in hospitality.

http://www.inbusinesslasvegas.com/2007/12/14/realdev.html

For you to do a short sale you would have to provide a Hardship Letter to your lender along with your financials. From what you've stated here, it doesn't appear that you can't afford your payments, have a job loss, or need to transfer. I don't believe the bank will accept your property value estimate or any loss in value as a hardship. I know of some short sales similar to your financial situation, where banks are willing to accept a short sale offer if the owner pays the difference in the form of another loan for the amount of forgiveness.

For you to purchase another home, you would have to have enough income to support both properties, need money down and pay a higher interest rate. You may have heard that mortgage standards have been tightened, lenders under much more scrutiny, and more resources being applied to investigate mortgage fraud. It wouldn't surprise me that applying for a second / investment home in the same city, while owning a home with negative equity, might generate a Suspicious Activity Report from your application. With those that have committed mortgage fraud and have contributed to most every homeowner losing equity in their property, it would seem that those doing as you suggest and buying a second property, followed by an intentional foreclosure, are just adding to the problem and may be the next wave on investigations. I would strongly suggest seeking legal advise before proceeding. There could be more consequences than just a severe hit to your credit.

Since it appears you're not under any immediate need to sell, I wouldn't suggest any hasty decisions. You may want to check refinancing options to see if your current payments could be reduced. Not only for any savings it could provide, but may open up rental options in the future.
4 votes Thank Flag Link Wed Apr 2, 2008
doesn't matter much if you're upside down
as long as you are going live there for the long haul
you can afford the monthly payment
sure you feel "richer" if your house is appreciating
if its not appreciating you feel "poorer"
the fact is
your cost hasn't changed
unless of course you got one of those nasty ARM loans
if they told you it was worth $500,000 you would keep it and feel better
its not worth that
yes, you probably paid too much for the house
but you will always need a place to stay
stay in the house
what are your other options?
bankruptcy?
short sale?
foreclosure?
that ruins you financially
you and 8.3 million other people will be "underwater" this year
maybe you made a bad decision
don't make another bad decision
keep the house

anyways

good luck
4 votes Thank Flag Link Mon Mar 31, 2008
Hi Emily. Unless there's a compelling reason for you to move now, I would not consider a short sale or foreclosure a viable option. Not everybody can do a short sale as you have to demonstrate a hardship for the bank to consider a discounted payoff. The mere fact that the house is now worth $100,000 less than what you paid for it does not constitute a hardship in the eyes of the bank. No question it is a hardship on you, but not every financial hardship qualifies for short sale purposes. As long as you are able to make the payments, I would not even consider a foreclosure as it would affect your ability to buy a house for many years to come. Like I have already stated, unless there's a compelling reason to move, stay put. Good luck.
3 votes Thank Flag Link Mon Mar 31, 2008
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Rent your home thus using it as an investment. Walking away and/or waiting for foreclosure is costly. Way more costly than what it would be for you to come up with new capital to relocate where ever you are headed in 3 years. By costly I mean in terms of damage to your credit and the nastiness of having poor credit in everything else you try to do. Ask me how I know.....been there done that, and just finally peeking my head out of that hole. I think the economy is in one of its natural down turns and will rebound eventually albeit 3 - 5 years. Just my 2 cents, I'm no expert, just a living witness :).
2 votes Thank Flag Link Sun May 4, 2008
I've truly enjoyed reading each response to my situation. Some comments have been very educational and I thank you for taking your time to help me. I'm not sure what we'll do but I now have some other things to consider. I wanted to let you all know that foreclosure or short sale has never been a serious option for us. We do believe in honoring our word. I was just feeling very frustrated and wanted to know what other options I had. What gets me the most is that when we were looking for a home two years ago every single Realtor I talked to told me to not wait, to buy ASAP. What bad advice, even worse I listened. Well at least I've learned a lot and hope to never make the same mistake. If anyone else has anymore advice please don't hesitate to share. Thanks again!
2 votes Thank Flag Link Wed Apr 2, 2008
if you don't need to move, then stay
not a good time to sell a house

anyways

good luck
2 votes Thank Flag Link Mon Mar 31, 2008
Check out the new bill passed in July 17th I think, If your not behind you may be able to re-negoate your loan to the appraised price, if you haven't been delinquet. But check it out, the rules are tought but good! It is an FHA loan that can keep you in the home, if that is what you want, but if you sell at a higher price, you must split the increase with the state, FHA, and then yourself. Its fair though!
1 vote Thank Flag Link Fri Aug 22, 2008
This 300 Billion dollar housing bill, which goes into effect in October, seems great in theory, but I don't think it's going to help many Nevada homeowners. because it's parameters. You cannot have an outstanding Home equity loan, and many do. In addition, the bank has to "volunteer" willingly to write down the value of your loan to 90% of the homes currrent value. (Original mortgage 240K, write off 90% current home value of 140K= 126K) The bank would have to volunteer to lower your mortgage 114K.

Wishing you the best Emily. Keep us posted.
1 vote Thank Flag Link Fri Aug 15, 2008
Hello,
here is a answer for you.
The president passed a new housing bill 2 weeks ago. It wipes out the negative difference
from 240K to 140K , we just refi at the new apprased value. Im so glad these realtors
told you about that.....

Mayflower Financial
Joseph M. Nardino
702-265-7493
1 vote Thank Flag Link Thu Aug 14, 2008
my husband and I are in the same situation - we paid $350K a year and a half ago, here in Henderson. We decided that we can no longer afford to keep throwing $2000/mo down in that black hole - we listed our house for $245K, received an offer the next day and we were anticipating doing a short sale with INDY MAC BANK! the appraiser came last Saturday and guess what - the house only appraised for $228K - so now we are in the middle of renegotiating the sale price!!! We have had perfect credit and its hard that our credit will be "damaged" with a short sale - however, a short sale is MUCH better than foreclosure. I have been in the real estate industry for a long time, and have seen this before - it will probably be at least 5 yrs before we could even break even. We choose to attempt the short sale, and get on with our lives.
1 vote Thank Flag Link Wed Aug 6, 2008
Emily,
You DO have a 30 YEAR loan right?
YOU thought your home was worth 240k when you bought it.
Now you THINK it is worth 100k less.
You have only the mortgage payments invested, with ZERO down.
Your lenders aren't telling you to come up with 100k so stop stressin'.
Have you had your home appraised in the current market?
You have ONLY LOST MONEY ON PAPER.
You still have a home.
This market is crazy. It could boom again.
Wait and see. You COULD recoup the 100k in three or four years.
At that point, you can come out even, or ahead !
Have a little faith.
1 vote Thank Flag Link Sun May 11, 2008
Emily,
I would suggest you stay put if it is finacially possible, you never know how the market will perform and you should hopefully be able to get back some of the value in 3 years. The options would be , you pay the difference at closing(no negative effect on credit) .Do a short sale with lender's approval(will effect your credit) or another option may be a deed in lieu of foreclosure(if lender will take it). Best of luck and wait a bit.
1 vote Thank Flag Link Sun Mar 30, 2008
Emily I have a business helping people out of foreclosure through the Short-Sale process. I have learned a lot about it and also have some very very qualified contacts not far from you that can probably make it a win win situation. I know you are not in foreclosure but maybe some of the techniques could work. Call me! Phil 615-469-5056
0 votes Thank Flag Link Fri Sep 5, 2008
http://www.mynewlifenow.org.
Check out New life Financial.
0 votes Thank Flag Link Fri Aug 22, 2008
We've decided to start the short sale process. Looking for a very savvy agent with proven short sale success. Please send referrals to verify. Thank you and looking forward to working with you.
0 votes Thank Flag Link Fri Aug 22, 2008
Your options are basically keep your credit score and starting paying off the additional $100K, or take a hit on the credit and start renting and saving for the next one.

We all make mistakes with investing, but in the long run, your credit can be repaired and by the time home prices are reasonable again, you will most likely be back to where you stand now. In the meantime save up some money and invest it in mutual funds...the stock market is on sale right now! It's not worth keeping the home and dealing with the mental anguish you're going through.
0 votes Thank Flag Link Sat Aug 16, 2008
Hey Joe...watch what you're saying. You are not even close to accuracy with your statements about Realtors. Be careful. Answer me this: who sets the sale price of a property? Seller or Realtor? Who decides the offer price? Buyer or Realtor? We are simply an educator in helping a buyer or seller to get from point A to point B. Use caution when trashing our profession. I'd get some education on the industry as well. It's clear to me that your understanding of the industry is very limited. What do you do for a living?
0 votes Thank Flag Link Fri Aug 15, 2008
I was in your position as well. I was introduced to a company that purchased my house from me for full price. (I now work for them). I purchased my house for $299,000 about 3 years ago. It is now worth about 200k. These folks are not in it for the real estate. I can explain in great length if your interested, It is totally legal and are helping a lot of families right now. Do you want to stay in the home?
0 votes Thank Flag Link Fri Aug 15, 2008
Joe I agree with you, that's why I am still current on my mortgage and have not walked away. However there is a HUGE difference between inconvenient and impossible! If my husband does not find a income replacement in Las Vegas making our mortgage payment will become impossible and losing our house and impeccable credit will not be convenient!
0 votes Thank Flag Link Fri Aug 15, 2008
I just want to voice my agreement with a Don Tepper who posted on March 31, 2008. Essentially, live up to your responsibilities. Imagine if everyone did what you want to do- walk away from their obligations just because it has become inconvenient for them. It doesn't amaze me that the far majority of respondents (real estate "professionals") support you in your irresponsibility as they were complicit in the irresponsible over-valuing of real estate in the first place. They got their fat over-valued commissions for little work, why don't they have to give back the percentage of their commission that represents the amount that places were over-valued? Same thing with lenders, same thing with appraisers...
0 votes Thank Flag Link Fri Aug 15, 2008
Does anyone know how to work with mortgage lenders? I know how the bill works, I know it's a long shot, that's why I really need the insiders info on how to work with my lender!
0 votes Thank Flag Link Fri Aug 15, 2008
Emily, you are right, there is no guarantee that any particular lender will work under the bill's guidelines and when. It will also not help if you don't have a job --still need to pay the mortgage. I think the options presented previously are your only choices right now. I wish we could help more but I don't see what else can be done.
0 votes Thank Flag Link Thu Aug 14, 2008
if you can rent it out or get some one to assume your payments.People have the same problems with $900,000 homes(walking out) and still need a home for cheaper $250,000 to $300,000 and can't finance due to leaving other house.just a last chance try ..good luck
0 votes Thank Flag Link Thu Aug 14, 2008
Joseph

I'm very much aware of the new housing bill and what it entails, no thanks to any Realtor I might add. I'm just interested in learning how to work with my mortgage lender. From what I've read it looks like Banks aren't going to be willing to take to government up on the offer until next year, if even. That will be too late for us. Any tips?
0 votes Thank Flag Link Thu Aug 14, 2008
How do you go about getting the bank to approve the new housing bill rescue loan?
0 votes Thank Flag Link Thu Aug 7, 2008
it is now in your best interests to stop paying your mtg and allow the bank to foreclose - just hand them the keys and walk away. you can rent much cheaper now -- in 3yrs your credit will have been repaired and you can buy new again no problem.
0 votes Thank Flag Link Mon Jul 28, 2008
Hi again Emily. Since there is a job loss, your a very good candidate for a "short sale" where the lender may allow you to sell the house at market value and take a "haircut" on what you owe on the loan (and pay for your closing costs as well). I just took such a listing today under similar circumstances. If you would like me to explain further how the process of short sales work and to sell your home, please contact me.

Best regards,

John A. Brassner, MBA, Realtor
Windermere Summerlin
Cell Phone: 702-808-9816
Fax: 702-995-0488
Email: john@john4realty.com
0 votes Thank Flag Link Mon Jul 28, 2008
So looks like we might be moving sooner than we thought. My husband's employer, a large home builder, is halting construction until the market improves, so he'll be out a job in two months. We've been looking for a new job here in Vegas but haven't had any luck. We have one offer in Texas and if nothing turns up in the next two months looks like we'll have to move. It's been 4 months since I first posted my question. The market has only depreciated more! I've researched the new housing bill that passed but looks like it doesn't go into effect until October 1st. And if we have to move I don't think we would qualify for the program. We don't want to foreclose, but renting our house at a significant loss ($800+) for years isn't an option for us. Any advice?
0 votes Thank Flag Link Mon Jul 28, 2008
With all the usual caveats (I'm not a lawyer, and I don't know Las Vegas real estate, except by reputation and word-of-mouth), my suggestion: Hold on to the property. It's a long shot, but there's a chance the market will improve sufficiently that you'll only take a minor hit when you sell. In the meantime, you preserve your good credit, which comes into play not just in buying a home, but also in obtaining credit cards, cars, etc.

I'm very familiar with the strategy that Scott is proposing, and it's a pretty good one. If you really want to sell, that approach can preserve your credit and deal with the overencumbrance.

A short sale should be your last resort--only if you absolutely need to sell (which you don't today) and if you absolutely can't make up the overencumbrance. Hold off on that.

Hope that helps.
0 votes Thank Flag Link Mon May 12, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
I buy over encumbered homes with out attempting any type of short sale. I would love to make you an offer.
I have been picking up many homes in Las Vegas.

Email me!
0 votes Thank Flag Link Mon May 12, 2008
If you can get out and rent it for a bit. You will get the rental. Maybe do a lease option. Because if you keep the house and buy another at a great low price. Did you know that your taxes would be almost nothing because if you have an investment property you can write a ton off on taxes.

Lori Vegas
0 votes Thank Flag Link Thu May 8, 2008
Ya know Phil, it would be nice if every Realtor knew how to do a short sale. That way there would be more approved short sales instead of foreclosures. But that's not the case. Actually, most Realtors can't handle them properly due to them being time consuming and very aggravating.

I am not sure where you heard that you don't need a Realtor to do a short sale. I can bet you that if you were in foreclosure and you tried to contact the bank as the homeowner doing your own short sale, the first question the bank would ask you is, "Do you have it listed with an agent?" In most cases, the bank never wants to talk to the homeowner. They know by listing the property with a professional, it will get sold closer to fair market value.
0 votes Thank Flag Link Thu May 8, 2008
You don't even need a Realtor to do a short sale .You can do it by your self by calling your bank.By now every Realtor should know how to do short sales
0 votes Thank Flag Link Wed May 7, 2008
I specialize in short sales. If you are thinking about doing a short sale on your home, please let me know. I will discuss everything about short sales with you and let you know how they work. There is a lot involved, but in many situations, it is worth it.

Like someone already stated below, banks are getting multiple offers on many of their properties. This is due to the banks lowering the list price less than fair market value. This strategy works to get buyers in the door and create interest. Many times these properties are getting sold way above the list price.

In the last 5 days I have put out 7 offers for my buyers. About 5 or 6 of them ended up having multiple offers.
0 votes Thank Flag Link Wed May 7, 2008
You can do a short sale on the property and sell the home for the current market value.What the heck is a short sale??.That is almost the same thing that credit card companies have been doing for years when you fall back in payments,negotiate with you and settle with a lower amount then your full balance.Banks do not need any extra inventory right now .Getting the house sold is better for the bank then having it sit vacant where it may become trashed,vandalized or maybe even stripped of copper in these days.My opinion is to start the short sale procedure, if you are upside down on your home.If you need help or questions feel free to contact me
0 votes Thank Flag Link Wed May 7, 2008
If you have up to three years, then just wait to list your home.
The market is turning around in Vegas as we speak. Prices started up in March in some areas of Vegas.
Within the last two weeks our team has written 10 offers, and half of those homes already have multiple offers.
Based upon the number of people moving into Vegas (over 6000 per month) and the shortage of applications for building permits buy the builders, the odds of the prices continuing to rise is very good.
In three years, your home should be worth more than when you bought it.
0 votes Thank Flag Link Wed May 7, 2008
Hi Rob,

I read your reply and understand that you may be thinking about renting your current home out and purchasing an REO property soon. Let me know if you would like my help with renting out your house and helping you find a nice REO property in your area. My office is actually located in Green Valley and I personally live in Green Valley. So I am very close to you. I have dealt with plenty of REO and short sale properties for buyers and sellers. With the education and experience I have, I am sure I can do a great job working for you. My contact info is below if you decide to look into those options. I appreciate any time you take to speak with me.

Len McGuirk
Prudential Americana Group
(702) 203-6688
0 votes Thank Flag Link Thu Apr 24, 2008
Hi Emily

I am in the exact same situation. We bought for 342000 in 2006 and now the comps in the area are 240000. We are stuck too. However, we are looking at possibly renting ours out probably for less than our mortgage. We have the cash and credit to buy one of the REO's more along the lines of what we want.

Yes, we lose a couple hundred a month, but sooner or later, the market goes back up and we reclaim our equity and break even on the current house and make money on the 2nd house to offset the loss. Not the best strategy for everyone though.

If you bought for 240K, your payments are probably around 1600/month is you did a 30 year fixed at 100% financing, so you should have around 5K paid off. If you add more to your payments, you could lower your balance owed substantially and get your home to break even status in a couple of years.

I would suspect the homes going for 140K are Repo's. Those will work their way out of the system over the next couple of years, then we will be back to normal sales of resale homes. The Repo's are dragging the prices down everywhere. In Green Valley, a home bought in 2004 for 450K is now selling for 250K as a repo. The resales in the area are about 350K. So once you clear out the repo's things will look a little bit better.

If you get foreclosed on, then you are part of the problem to begin with. I have heard of this strategy all over the city and frankly I think it sucks and should be made illegal. It just further complicates this mess. All that will happen is those who do this will get foreclosed on a 2nd time in a couple of years. If that happens, you should be put in jail for fraud.
0 votes Thank Flag Link Wed Apr 23, 2008
Hi again Emily. Nobody can predict how much your home will be worth in the future. But you sound like you are in dispair now for something that hasn't happened yet.

"Do-it-yourself" price research can be risky--just looking at prices on a web site won't give you the whole story. Probably what you are seeing is a few "comps" that are short-sales and bank-owned that may or may not sell at that low price. I can tell you that the well-priced bank-owned properties are selling like hot cakes (real good tastey hotcakes) with multiple offers. Once that inventory has dried up, the other resales will start to sell and things will be better. I'm seeing that now. Please don't dispair--when it is time for you to sell, you'll make the best decision you can based on marketing conditions at that time. Are you really going to worry every day for the next three years? Of course not. Keep my number in a drawer and pull it out in three years,

John
0 votes Thank Flag Link Mon Mar 31, 2008
It's a two year old 1400 sq feet home. I'm figuring it's worth $140 because that's what the houses in my development are priced at on zipreality. So do you guys really think my house will be worth $240 again in three or so years? Because if not I'm still going to be in the same stuck situation. My husband works for a large home developer here in las vegas so we are very much aware of the market, personally and professionally. From what I've read and heard they don't expect the market to improve here for at least another year. I've even read some articles that predict continued depreciation at much as 10%. I just feel like a sitting duck. Even if we stay in our home for the next 3 or even 4 years we're still going to be upside down by a considerable amount making it still imposable for us to sale.
0 votes Thank Flag Link Mon Mar 31, 2008
Emily, is this a condo or a house? $140k seems awfully low for a home that was bought at $240k just two years ago. Perhaps, someone gave you faulty info? In any event, Len, has given you the same advice I would have. Relax for now and enjoy your home. When you are close to getting ready to sell it, then discuss with a trusted Realtor your options at that point. We're good at finding solutions for our clients!


--------------------------------------------------
John A. Brassner, MBA, Realtor
Windermere Summerlin Real Estate

Cell Phone: 702-808-9816
Fax: 702-995-0488
Email: john@john4realty.com

10777 West Twain Ave, Suite 105
Las Vegas, NV 89135
http://www.NevadaRealEstateCenter.com
--------------------------------------------------
0 votes Thank Flag Link Mon Mar 31, 2008
Thank you for your answers. All options mentioned we have previously considered and didn't feel like any of them improved our odds of coming out of this on top. That's why we're looking for out of the box advice. Let me explain. We could buy another home now and rent ours. We would have to rent at a loss because our home rents for $1200 and our mortgage is $1850. We could buy another home now and foreclose on this home, but that would destroy our credit and we would still be stuck here in las vegas. Good thing about foreclosing on our home and buying a new one is we could get a lot more house for a lot less money and have a hope of earning equity on our home. I could go on and on about our options but in the end they all leave me with either bad credit or needing to come up with lots of money! Only thing I can think of to get out of this situation is to start flipping homes. But with todays market I don't even know how profitable that would be. Any more advice?
0 votes Thank Flag Link Mon Mar 31, 2008
Emily,
Another option you may have that wasn't mentioned is to rent out your property. You stated that you have to move. If you can obtain enough money in rent to cover your mortgage or come close, then that will give you the opportunity to relocate where ever it is you need to be. If you have great credit, then you might also be able to purchase another home in the new area, depending on your income. If you want a free market analysis to see what your property is valued at or if you want to move forward with listing your home as a short sale, let me know. I specialize in short sales and I know how to deal with the banks.

Len McGuirk
Prudential Americana Group
(702) 203-6688
0 votes Thank Flag Link Sun Mar 30, 2008
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