My husband and I are looking to downsize to a smaller home but owe more than our home is worth.What are the chances of this happening in this economy?

Asked by Marci, Albuquerque, NM Sun Mar 10, 2013

Here's what's good:
Kitchen renovated 5 years ago
New windows and stucco 5 years ago

Here's what's not so good
Don't want to move more than 5 miles
HVAC problems
Electrical problems
Leaky ceiling in the kitchen
Not so great credit (my average credit score is around 650)
Would like to move into a home that doesn't need work

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Edith Karoline Jasser’s answer
Edith Karoli…, Agent, Winnetka, IL
Thu Mar 14, 2013
You have more than just one problem.... if you think you are under water, is because you are assuming that your home will sell for a certain price which in your opinion is less than what you owe the bank at this point, you may want a local Realtor to figure the true numbers out for you and put in the closing costs for selling and for buying next.

And yes if the bank accepts a short sale you cannot just turn around and buy, did you think then about
first renting? Renting a smaller place?
It really depends, but someone of course to give you good numbers will need to see your home.

As you want to down grade and not upgrade, it seems to me that you may be better of fixing the problems you are currently having, improving your credit and revisit the situation in a year or two...
But a local experienced Realtor may give you deeper and better insights.
Good Luck to you
Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

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0 votes
Chris Nyman…, Agent, Albuquerque, NM
Tue Mar 12, 2013
First off, YES, this IS common in this market. ANyone who purchase or refinanced a home after about 2004 is likely under water on it's value - at least until home prices rebound a lot more.

Your situation is complicated and would be best served by a home visit. I work for a compay that specializes in REO's and short sales, and would be happy to sit down with you and discuss your options. One thing that no one below is saying is this: If you short-sale your current home you will not qualify to purchase a new home for at least 3 years, and possibly longer. Period.

Your best option is to beg, borrow or finance enough to conduct neccessary repairs on your home, and then sit down and create an informed strategy for a move - or not - depending on so many factors. As mentioned, I'd be happy to do that with you in person or over the phone. My number is (505) 440-6293. Chris Nyman Weller.

And all the luck in the world to you!
0 votes
Chris Smith, Agent, Albuquerque, NM
Sun Mar 10, 2013
Marci - looks like you have received a lot of great feedback. I would definitely appreciate the opportunity to meet. As you can see, there are many options and strategies to consider. Please call so we can discuss. I look forward to speaking with you. Chris Smith 505-379-2763
0 votes
Max Sklower, Agent, Albuquerque, NM
Sun Mar 10, 2013
What you are facing is a SHORT SALE. For you to sell your home you will have to deal
with the bank that you owe money to. That is problems enough but then the
physical problems make it more difficult. I can REFER you to someone who
DOES foreclosure sales. I do not do these. Let me know you name and phone number and/or email and I will have a short sale specialist call you. OK? Max Sklower. Owner of Broadcast Realty in Albuquerque. email:
0 votes
Thanks, Max
The short sale specialist can contact me at
Flag Mon Mar 11, 2013
Renee Furst, Agent, Albuquerque, NM
Sun Mar 10, 2013
Hi Marci,

Hold on, there are some government loans coming soon, so that you can refi at a much lower interest rate. I can have my team contact you on this ASAP. Or, if your still wanting to downsize then you
have so...many choices available! Let me know what you goals and desires are, so that I can get you
there quickly. Experieced with "Short Sales" and cover the whole State for you.

Text, call or email.


Renee Furst
Equity New Mexico
3620 Wyoming Blvd. ste 229
Albuquerque, NM 87111
(505) 459-7891
(888) 205-0294
0 votes
Renee, thanks for responding. We just refinanced but still want out; we want a smaller place with a smaller payment and to not be underwater. What are the many choices?
Flag Mon Mar 11, 2013
Krishna Jais…, Agent, Albuquerque, NM
Sun Mar 10, 2013
Hi Marci, Thanks for thinking about it (taking the step). Your situation is one of the typical case of current market . There are several options for both the houses, even if your credit score is not good, you can still buy a house. It also depends on your plan on how long you will stay in your new house. If this is what you want to do, then you should do for a happy and comfortable living!
In my opinion, there is not a simple one directional option, unless you are asked some right questions. It’s a good idea to make an appointment and talk to one of the experts of these situation or ‘me’, who could give you different choices! What if keeping of current house is a good idea with having some cash flow while you buy another house with owner financing? – Regards, Krishna Jaiswal 505 980 6649,
0 votes
Leigh-Jo Anz…, Agent, Albuquerque, NM
Sun Mar 10, 2013
Hello Marci,

First, your credit score is better than you may imagine. Generally, a minimum 620 credit score is necessary to buy a home. Although there are some additional factors, you're already in a better position.

Now, to determine your options on selling, I would need to valuate your home and compare it to activity in your immediate area. If you'd like, I can prepare a discreet and FREE home valuation for you. Simply go to and input your property information.

What specific problems are you having with the HVAC and electrical system? Also, have you had the roof looked at to determine if a patch will resolve the issue or if the roof needs to be replaced? Every home has a buyer, even homes that are in need of repair. These type of issues can always be negotiated with a buyer.

Is renting an option or selling with owner-financing? Do you have money saved for a down payment?

There is much to discuss. Feel free to connect with me.

Syan Real Estate
Call/Text: (505) 730-8181
Web Reference:
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