100% financed our condo. The market tanked and we lost a lot and continue to. Need to sell for growing family but the loss is huge. Any advice?

Asked by Ceyda79, Boston, MA Mon Jul 25, 2011

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Mikel DeFrancesco’s answer
Mikel DeFran…, Agent, Canton, MA
Wed Aug 24, 2011
If believe you can qualify for a short sale then that is the way to go... if you cannot ( your assets or income are too high ) there is no easy answer. What about renting / eating the loss while the market recovers? Are you able to swing that, or reduce that monthly and still get to the housing you need for your growing family?
Web Reference:  http://www.successinmass.com
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Aug 1, 2011
Maybe I am missing something, but if you used 100% financing to buy the condo, then you really haven't lost "a lot"............or anything....the bank has............you had no "skin in the game" to lose like so many who actually put their own money down to buy a home..
Basically, you have just been paying rent.

Advice? Keep paying your debt.......or, although it doesn't sound that way, if you have a genuine hardship - speak with someone who can guide you through a possible short sale.

Good luck!
0 votes
Danielle O'B…, Agent, West Roxbury, MA
Mon Aug 1, 2011
Show me the note is a complicated defense, and does not apply in this situation as they are not facing foreclosure. Also, I do not believe it is ethical to navigate a client into this scenario! Be careful of anyone advising you to do so. Similar to home debt relief companies from the past few years, I'm sure this will become this latest wave of homeowner help and will end up scamming some folks around the country.
0 votes
Dan, Home Buyer, Alabama
Mon Aug 1, 2011
Strategic default. Make certain you get educated on Show Me The Note Foreclosure Defense.

Will the realtors present please grow up and get educated to the real world going ons?!
0 votes
Danielle O'B…, Agent, West Roxbury, MA
Mon Aug 1, 2011
Hi Ceyda,

I would suggest to have a RE professional do a market analysis on your current condo and find out what is truly worth, also ask for going rents in the area. If it is possible to keep the condo, rent it until prices rise a bit, and transition to a new home that would be ideal - as long as you are willing to be a landlord. It is not for everyone! Also, it may or may not be possible depending on what kind of program you are planning to use for your new home purchase. I was in a similar situation last year and ultimately decided to keep my current home and rent it, and we bought a new home. It was tight, but manageable. We now call that house our "college tuition home" as we plan to keep it until our kids are college bound! Just in this past month I have met with two others in this situation as well. One has decided to list at a price barely avoiding short sale, and the second is holding out a bit longer! Feel free to email me your condo address and I can take a quick look and have a candid conversation with you regarding the current situation.


Danielle O'Brien
0 votes
Shanna Rogers, Agent, Murrieta, CA
Mon Jul 25, 2011
Hi Ceyda79,

Is it possible for you to keep the condo (maybe rent it out) and still qualify for another home? If not, you most likely will not be able to purchase another home. If you still want to sell your condo, you could do a Short Sale but you have to prove financial hardship to your lender for them to approve it. They will not approve a Short Sale just because you owe more than the property is currently worth. Now, if you do a Short Sale, it may be a few years before you can purchase again.

Shanna Rogers
SR Realty
0 votes
Bob McClure, Other Pro, Walled Lake, MI
Mon Jul 25, 2011
good evening...yes, i have some advice.....if you need another home...get your exit strategy in place..then deal with your existing home.....
very best regards.
bob mcclure
0 votes
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