When to foreclose on upside down Rockridge home?

Asked by btsmarie, Vero Beach, FL Tue May 15, 2012

I have a house in Rockridge that was purchased one week before the big hurricanes on 2004 for $130,000 (yes, at the height of the market). I was recently told by a realtor that the most I could get was $65,000 and a very comparable house next door just sold for $53,000. Is it time to walk away as I just don't think I'll ever get close to the mortgage value again.

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Kim & Ron Sm…, Agent, Vero Beach, FL
Tue May 15, 2012
I definitely would not recommend allowing your home to foreclose. The banks are doing a lot more for their customers that are upside down on their mortgage. I am a Certified Distressed Property Expert and can help you with your questions about foreclosure and short sales. Please contact me for further assistance. 772-480-4660
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Tim Moore, Agent, Kitty Hawk, NC
Tue May 15, 2012
Allowing a foreclosure to occur is your option i guess. The height of the market here was in 2007 so you are in better shape than some. Could you rent it and hang in until things get better? To assume that the market will never ever get back to what it was in 2004 is incorrect in my opinion. I have seen the real estate cycle go up and down and up and down and to think it won't again is wrong, in my opinion. Will it do it in the next couple years? I doubt it. In the next 10? I think so.
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Thanks, Tim. In this area, the home values didn't continue to increase after our area was hit with back-to-back hurricanes in Fall of 2004, so our values really started to drop at that time. It would be wonderful if home values could double in ten years, as that is what it will take for this particular home that was just appraised at 50% of what the loan amount is. Thanks for such a quick response! I like the optimistic approach that you have.
Flag Tue May 15, 2012
Carl Hawthor…, Agent, Woodstock, GA
Tue May 15, 2012
Values will return in your area one day. You could always consider renting the home and purchase another home away from the ocean. Another option is a short sale, which is not as drastic on your credit score.
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Thanks, Carl. I don't know much about foreclosure or short-sale options, and have never been late on a mortgage payment so I haven't been alerted of these options from the bank. I think the idea of renting has merit, except my mortgage is significantly higher than what the local rental market brings. It would be great to think that the home value could double within then years, to get it back to the mortgage loan amount.
Flag Tue May 15, 2012
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