I am looking for some advice. We are considering renting out our home. We are $70,000 underwater. There have been dozens of foreclosures in our

Asked by R.c, Tucson, AZ Mon Apr 23, 2012

neighborhood and that has tanked the value of our home. Selling isn't an option.

We have had two children over the past three years and we would like to relocate to be nearer our families. Our home, however, is proving to be an anchor around our necks. If we do rent we will have a negative cash-flow of about $500 a month. That is not factoring occasional repairs or HOA fees. We will have to invest another $5000 to get our property in condition to rent (mostly replacing carpeting.)

Refinancing to lower our payments is proving a dead end, at least with our present lender, since USAA isn't fully participating in Harp 2.0.

We have have never missed or had a tardy mortgage payment. We have excellent credit. We make around $160,000 a year and are not in a hardship situation. Renting our home to lose money seems like a bad strategy and one that could be detrimental in the future.

Any ideas?

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Scott Davidson’s answer
Scott Davids…, Agent, Tucson, AZ
Tue Apr 24, 2012
Don't be too quick to write off a short sale as an option because you have money. There are certain relocation criteria that can work for hardship and we have worked successfully with many people to short sell their homes who never had to miss a payment and are not very close to default. Many people, including myself, are willing to help you explore this option and see if it works for you at no cost. There is no fine print to that. It costs nothing but a little bit of time to see if we could get the bank to work with you.

Obviously with all short sale and loan modification attempts, there are no guarantees, but knowing your options can help you make the best decision.

Please feel free to contact me through this website to ask any questions or I'll be happy to pass my number along if you would like to chat. I am a member of Long Realty's Short Sale Resource Group.
0 votes
Eddie Holmes, Agent, Tucson, AZ
Mon May 21, 2012
First, let me say "you are not alone" in this matter. There are many underwater homeowners out there that have been financially responsible and are not in a hardship situation. Unfortunately, the current housing market doesn't discriminate and it affects everyone. I would seek advice from your financial advisers to see what is best for your scenario. You may see that it makes sense to rent your home for a little while up into where you can at least sell it and break even in the near future. The housing market is showing many positive signs and the rental market is strong right now. if you need help to see what your home may rent for, I will be glad to help. Hope everything works out for you and your family.

Eddie Holmes
0 votes
Mike Morgan, Agent, Tucson, AZ
Thu May 17, 2012
I am so sorry that you are going through this situation. Let me let you know, you are not alone in this boat.

There are many people trying to figure out their next move with their home as well. I saw that someonw had recommended to seek coucil and I would agree with that answer. Seek the correct answers so you have the correct picture of where you want to go and the things that can effect that path.

If you need help, I have people in my office that deal with that situation every day. Let me know and I can shoot you a few names to talk with to get you the information so you can make an informed decesion for what's best for you and your family.

I hope you find the answers that helpe you make that decsion.

Mike
Keller Williams
520-404-0308
0 votes
Ric Mills, Agent, Oro Valley, AZ
Sun Apr 29, 2012
First talk to at least two mortgage lenders to see what your options are under HARP 2.0. I can give you a couple to contact if you need some information. Then talk to your attorney and accountant to see if a short sale or foreclosure is the best option. Both will have a huge impact on your credit and will take several years to restore back to a good level. Then talk to an experienced Realtor that does Short Sales, like me, and make an intelligent decision. Renting is an option, but a $70K short fall, could easily last 10+ years. The good news is that housing prices are starting to rise and that should shorten the time that you are up side down. Let me know if my Team can help you.
0 votes
Stephany J.…, Agent, Gilbert, AZ
Sun Apr 29, 2012
HI RC~ I have helped many people in situations like yours list and seller their homes sucessfully as a short sale. Although your financila situation is not a hardship in a traditional sense, the negative equity in itself is a hardship. Many of my clients have had stable jobs, money in the bank and not been dilenquent, in certain situations, yet the short sale was approved.
There are servicers and investors that are both involved- the servicer being the company who services your account as well as an investor who backs the loan.
I would also be happy to refer you to a lending professional who can help you determine who is the investor for your account, seeing how the investor is really the key to knowing if you are eligible for HARP. My best advice is that you personally speak to at least two full time realtors who are also short sale specialists, like myself, as well as at least 1 other company in addition to USAA about the HARP option, so you can make this important decision for your family's future~ Best of luck...

Stephany Bullington, Realtor, SFR~CSSN
0 votes
Ric Mills, Agent, Oro Valley, AZ
Mon Apr 23, 2012
USAA may not participate in Harp 2.0 but there may be other lenders that will. Check around and I can recommend some that can tell you if it is possible. Renting is an option and it may be your best bet for the next ten years or so.. The first thing you need to do is talk to a full time Realtor and let that person go over all of the options. This consultation is free and could give you a head start on making the right decision for you. The positive news is that a lot of the hard hit areas are starting to rebound and prices seeem to be on the rise. However, it will take a long time to make up $70K difference. Leyt us know if we can help..
0 votes
Loren Hoboy, Agent, Phoenix, AZ
Mon Apr 23, 2012
The best advice is to seek the legal guidance of a real estate lawyer specializing in short sales. There is more to this that can be or should be explored here.
0 votes
Spirit Messi…, Agent, Tucson, AZ
Mon Apr 23, 2012
Hello RC

Clearly you have given this a lot of thought and I am sorry for your situation. From a professional looking at your situation, with no emtional value you need to make a decision. You take the lose, clear this from the book and sell at the market price today. Or you wait, rent it out (also at a loss) until the market returns to a place where you feel you can sell it and not lose as much as you would in today's market.

You may want to talk to a short sale specialist, but sounds to me that you would not qualify for that option.

Hard decision to make and it is yours to think about. I wish you all the best.

Spirit
0 votes
Nancy Socolof…, Agent, Tucson, AZ
Mon Apr 23, 2012
I can think of out of the box ideas, and explain to you choices you may not know.
Additionally I can offer you resources that may help too.
520.977.5973
I am so sorry about your situation, please phone & I will help you sort this out.
0 votes
Sam Zobrest, Agent, Tucson, AZ
Mon Apr 23, 2012
This is something that I would like to discuss with you not on a public forum such as this. I am the owner and broker of Wildcat Realty & Property Management and I may have some ideas for you. Give me a call at 520-312-8032.

Thanks
0 votes
Thomas R Jol…, Agent, Tucson, AZ
Mon Apr 23, 2012
Call Sam Urfali at Arizona Metropolitan Realty and Management 520-808-6488. He has been doing property management for a long time and can answer your questions. He will sit down with you and go over all of your options.
0 votes
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