i bought a home in 2008 for 710k. the value of my home is now 650k. we need to sell. what are the options?

Asked by nance, San Marcos, CA Tue Sep 1, 2009

we have a toddler and am want to stay home with my baby. we would not be able to stay in this home and would need to move to a different area. what are my options as i do not want to lose my down payment?

Help the community by answering this question:

+ web reference
Web reference:


Bryan Devore’s answer
Bryan Devore, Agent, Carlsbad, CA
Tue Sep 1, 2009
Hi, Nance. I'm sorry you're in this situation. Without knowing how much your downpayment was, I don't really know your current financial position in the house. If you are in a situation where your current loan is higher than what you could sell the house for (minus the sales commissions and closing costs), then you would be faced with losing your downpayment and trying to do a short sale. With a short sale, your lender agrees to take less than what the loan amount is for.

The main thing right now is to determine if you want to stay in your home to preserve the home (if you can afford to stay in the home) or be able to stay at home with your baby (which is commendable!), and risk not being able to keep your home. There really isn't an easy answer, or a right answer, just the best choice for you given your alternatives. I'd be happy to discuss this more in detail with you as there are MANY pros and cons (tax consequences, etc.) with everything you are thinking about. Please feel free to visit our website for our contact information.
Web Reference:  http://www.thedevores.com
0 votes
Michael Ford, Agent,
Thu Feb 6, 2014
folks, this question is 4.5 years old.

trulia, get some new questions that are timely so as to be most relevant to the current market
0 votes
Trulia needs to do a better job communicating to their users that Q&A is the best way to get their questions answered. When prospective clients choose to use this format instead of going directly to the three agents on the house they are looking at they are able to get a much better quality reply from higher quality agents. It would perhaps be nice if trulia made it so you couldn't answer 5 year old questions.
Flag Sun Feb 9, 2014
Harold Lear, Agent, San Diego, CA
Thu Feb 6, 2014
There are a lot of home owners with the same problem today. Upside down.
We at our office work with a law firm that can get you a reduction in your loan balance to current market value or even less. There are a lot of home owners today that received a Loan Mod that fixed there rate for 5 years. It was great when they got it but they didn't read the fine print. Now the money that they didn't pay has been added to the back of there loan. Now they can't afford there payment (the Next Wave of Foreclosures) because the payment is going up with the money being added to the principal.
Our program is NO COST to the client. It's not a Loan Mod, The procedure is quick 30 to 45 days and you could have a new loan with a balance equal to current market value or even less.
For more information:
Harold Lear
0 votes
Mike Stone, Agent, Carlsbad, CA
Thu Nov 28, 2013
My first thought is that you should try to stay where you are. Refinance at a lower interest rate, if you can. If that wouldn't work for you, then you need to discuss your situation, and evaluate your choices. I'd be happy to help.
0 votes
Yoann Baral…, Agent, San Diego, CA
Sat Aug 17, 2013
You have many options available to you. Every case is different and i would suggest talking to a real estate professional in your area.

How did you come up to the present value of 650K ? friends? family? licensed appraiser?

If you don't have much equity in your house and don't want to lose money on it, maybe you should try to short sale it. Talk to a short sale specialist in your area.

What is your TOTAL current mortgage payment + any other fixed cost you have with that house? Could you rent it out for that amount of money and break even?

You situation is common and could answer any other questions you have.

Goog luck Nance
0 votes
Amanda Joy B…, Home Owner, San Diego, CA
Sat Aug 17, 2013
Have you had comps pulled to see what the value is in today's market? I can do that if you give me the address.

Otherwise, your only options are renting it until the value goes up. (A good property management company is Chamberlain) OR Short selling it (I can help with that)

See if your mortgage is allowed to be assumable (taken over by a buyer). If so you could sell the house without paying closing costs and the deed just get transferred to the new buyer. It makes it easy to buy a home and some buyers are willing to pay more just for the convenience.

Also, some mortgages require permission to rent the home. I've found that even if the mortgage originally wouldn't allow renting, they are allowing it in this market if you tell them you couldn't afford to make the payment without a renter.
0 votes
David Rudd, Agent, San Diego, CA
Sat Aug 17, 2013
Hi Nance,

You may already know, but the market has been trending upward in price over the last 8 months. So your options would be to carefully consider:

1) Sell now and have some (or all) of your down payment disappear

2) Rent your home out, in hopes that appreciation continues and you are able to sell at a break even or better position (this depends on your cash flow, as many rentals at this price range run at a negative monthly cash flow = you still have to pay a few hundred out of your pocket to cover all housing expenses)

3) Hold tight, see if market continues to appreciate and if it does sell at that time

My guess is you probably knew these were your options, but sometimes it helps hearing it from someone in the industry. I wish you the best of luck!

David Rudd
Kindred Real Estate
0 votes
Uriah Anders…, Agent, Palm Desert, CA
Sun Jun 16, 2013
Hello Nance,

There are many downsize options available in the area that would allow you to still live in San Marcos but for perhaps half of the mortgage and payment you have now. If you can sell the home you have and buy one like this http://www.trulia.com/property/3122037499-1514-Caminito-Agua… you might be able to cut your payments in half due to lower rates and a much lower loan amount. Please feel free to call me at 760-585-8328 with any questions you may have.

Warm Regards,

Uriah Anderson, CA Dept of Real Estate Broker License #01303991
0 votes
Amanda Joy B…, Home Owner, San Diego, CA
Wed Mar 13, 2013
I would hire a property management company to take care of it for you and let them find you a renter for a couple of years until you can pay down your mortgage. Who knows, by then the market could bring more for it.
0 votes
Greg Von Her…, Agent, La Jolla, CA
Mon Sep 26, 2011
Not much you can do in this situation. A short sale is feasible if you owe more than it's worth and your income meets lender guidelines. It's worth looking into. Your downpayment is gone though for the time being unless you can hold onto the property for a few years until the market turns around.
0 votes
Michael Ford, Agent,
Sun Sep 11, 2011
there are only two options for you here as you have stated that you need to move...you can short sell the home or stop making payments and let the home be foreclosed.

you do not state what your down-payment was so we cannot say how many months it would take to recoup it in saved payments if you decide to stop making payments.

if you put 20% down you still have a little equity...if you put less down the math is more bleak.
0 votes
Diane Conaway, Agent, Escondido, CA
Wed Sep 2, 2009
Have you called your lender to inquire about a loan modification?
0 votes
Kimberly Bra…, Agent, Venice, FL
Tue Sep 1, 2009
In order not to 'loose your down payment' the only options i can see would be rent it out until the property appreciates to the value you purchased it at, say 3-10 years. There are also tax benefits to investment property, like depreciation - so please talk to your CPA about this option.

Hope this helps..Kimberly
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more