We live in Gainesville, VA and my company is moving me to Lexington Park, MD. I need to sell my home in VA.

Asked by Gary Corbett, Gainesville, VA Wed Jul 2, 2008

It will mean a loss of probabaly $100k, but there appear to be less expensive homes in Lexington Park, so we could break even on the transaction. We have no cash to throw at this problem, so is there anyway to roll the loss from the Gainesville home into the new home in Lexington Park, MD??? Bridge loan? Looking for ideas. We also own a home in New Hampshire that we have on the market and we are looking to rent out.

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Vicky Chrisn…, , 20176
Thu Jul 3, 2008
Consider talking to your lender about a short sale with a note payable (which in your case, might even be a SECURED note payable on the property in Lexington Park) to pay the difference. Yes, they are starting to do these. Call me if I can help. These are generally the types of short sales that work! :-) And, you can likely escape with a clean credit report - unlike many other poor souls.
1 vote
Don Tepper, Agent, Burke, VA
Thu Jul 3, 2008
As the others noted, there's no way to "roll over" a loss from one property to another.

It's a tough situation. I know several people who bought in Gainesville while the market was hot. There are some nice properties out there. But the commute was always brutal. And now with gas at $4.25, it's pretty expensive, too.

Without checking the comps, your estimate of the potential rent seems about right, as does your estimate of the decline in values. You should pin down those numbers with a Realtor.

You might be able to increase your monthly rental somewhat (a few hundred dollars) by offering the property as a lease-option.

Meanwhile, it sounds as if the New Hampshire home is a real drain. Aggressively try to do something with that. Get someone in there paying something. Consider a lease-option for that property, too. If, for instance, you're paying $825 for an empty house in New Hampshire, even if you just got $600 a month, that's $600 more than you're getting now. And if you could bump up your income from the Gainesville property by $250 a month, that's a total of $850 more than you're receiving now. And that would narrow your projected $1,800 a month negative cash flow on the Gainesville property significantly.

Then, you might think about renting rather than buying in Lexington Park. I'm not very familiar with the area, but your goal is to trim your expenses to the bone and to increase your income. Trim those expenses by renting for awhile. (Hey, maybe even consider finding a property available as a lease-option in Lexington Park. It should cost you barely anything more than straight rent.)

Check with a good CPA on the tax implications involved. And there may be ways to help address your situation that a CPA could help with.

Hope that helps.
1 vote
Cindy Jones, Agent, Alexandira, VA
Thu Jul 3, 2008
You may want to call the loss mitigation department at your current lender and talk about the situation. First to see if there is anyway to restructure your current loan and second to see whether you might qualify for a short sale due to the job transfer. A loss on your home is not "transferable" and if the value of your current home is less than you owe a bridge loan would not be an option either.

Discuss everything with your current lender and a CPA for more detailed advise on the the right choice for your circumstances.
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1 vote
Keith Sorem, Agent, Glendale, CA
Wed Jul 2, 2008
Does your new employer realize that this move may cost you $100K? Does the company have a relocation package?

In most cases the best scenario is to rent it out (see your CPA for the tax implications). Think about how long it would take you to save $100K. I would only sell it I had examined all possiblities...including having your new employer help with the moving costs.

I suggest discussing your situation with a Realtor that has experience in your area, has experience with rental property, and have them develop some options. I would share those options with your employer, see if they can help you out.

Feel free to post more. My sister-in-law is the Director of Relocation for a very large Fortune 100 company.
1 vote
Rick Urben, Agent, Warrenton, VA
Wed Jan 19, 2011
This is a situatation that many people find themselves in these days. I have a mortgage broker that could definatley answer these questions for you(no obligation to you) I work for Long and Foster and we have all of the resources you need. I would love to meet with you and discuss all of your options. Call or email me and I will do my utmost to get you through this transition in your life!!

Rick Urben
Long and Foster Real Estate Inc.
(571) 762-6252
0 votes
Amy Givoni, Agent, Boca Raton, FL
Tue Dec 28, 2010
You can short sale this property. Please call us to discuss your specific situation. We would be happy to explain the process to you. All inquiries are confidential. Our services are FREE to homeowners.

Short Sale Department, LLC
0 votes
Jim Agnew, Agent, Centreville, VA
Thu Mar 11, 2010
As a Certified Short Sale Professional, my recommendation is the short sale route, you may establish a "hardship" due to relocation. Contact me for more information, I have porfessional short sale negotiators on my staff, a 6 Realtors on my team, we handle everything!!!
0 votes
Gary Corbett, Both Buyer And Seller, Gainesville, VA
Wed Jul 2, 2008

We have looked at the rental option, and we can only make back $1900-$2200/month of $4000/month payment. We also have a $825/month payment in NH, so rental doesn't seem like a great option in our situation. My company says they have no money to absorb my loss, though I can turn down the move and risk being out of work.
0 votes
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