should I sell or rent my home in Oildale;it has depreciated 150,000.?

Asked by Eldelle2, 93308 Wed Oct 26, 2011

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Andrew Brager’s answer
Andrew Brager, , Los Angeles, CA
Sun May 6, 2012
Everybody else is offering you the following:

Offer and Compromise (“Mortgage Debt Relief,” also known as “The Short-Sale”). The prospect of debt forgiveness often sounds like a blessing, until the borrower being so “blessed” suddenly realizes that, in order to qualify for the debt-relief, he/she must prove virtual insolvency; destroy his/her credit ; and have a ready and willing (highly qualified) buyer waiting in the wings. Then comes the next sudden insight… that any debt to be forgiven (“relieved”) is taxable by the IRS in the year the relief is realized. To top it all off, the “forgiven debtor” ends up empty-handed. He/she is forced to walk away with nothing to show for those years of hard work, sacrifice and effort .

Foreclosure. Many over-burdened homeowners erroneously reason that if they were willing to sacrifice their credit standing, they could just “walk-away” from a burdensome property without further repercussions. The fact is, however, that unless the defaulting borrower were to be insolvent, the difference between what is owed to the bank and what the bank finally sells the property for, is reported to the IRS by the bank, and treated, along with the bank’s costs of disposition, as taxable income (“debt-relief”). The IRS also treats any unpaid (“back”) mortgage payments as taxable income to the defaulting party.

Deed-in-lieu of Foreclosure. In a declining or stagnant Real Estate market, a lender’s acceptance of ownership of a property with no or minimal equity, instead of repayment of the mortgage loan, is highly unlikely (an under-statement). However, even if a bank were to entertain such acceptance, the IRS would none-the-less likely view any resulting debt-relief and unpaid amounts (e.g., back payments, insurance, property taxes, etc.) as taxable income to the homeowner.

Before you try to rent out your property, go to google and type in "I hate being a landlord". I got "About 5,970,000 results".

If you're tired of non-solutions and perpetual headaches and you just don't know what to do with your property, then contact me for a creative, worry-free solution that could actually result in a profit, not a loss. I'm an investor not a realtor, I don't charge commissions and I don't offer consulting services. I'm in Bakersfield, CA and I currently only work with Bakersfield area houses. I work with multi-family apartments too if you happen to own any.

Andrew
apb3304 at bak.rr.com
0 votes
Christopher…, Agent, San Diego, CA
Thu Oct 27, 2011
Here it is!! If you are not in a situation where selling is a must… KEEP IT! As long as you can cover the mortgage by renting or even if you have to come out of pocket a little... DO IT. Remember the housing market is like the stock market, you only lose if it’s depreciated and you have to sell, but if you have to sell SHORT SALES are my specialties.

Chris Mushrush
Contact me anytime my email is chrismushrush.realtor@gmail.com
0 votes
Shanti Brins…, Agent, Bakersfield, CA
Thu Oct 27, 2011
It just depends on your situation. Some people are treating it like a business and starting over by selling. Others are doing ok even though they are upside down and just going to ride it out. Please give me a call and I can help discuss your options. I work with a lot of clients who have done short sales. I also have clients who have decided to stay in for the long haul.

Shanti Brinsfield
email: shanti@shantibrinsfield.com
Cell: 661.978.7101
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Oct 26, 2011
Eldelle,
A home's value is always subject to change. A few years ago things were going up 10% to 20% a year, which is part of why we are in this mess. The decision will depend on your short, medium and long term plans and where you think the market is going. If you need the proceeds now, sell soon. If you bought it as a long term investment and are getting a reasonable rent, hold on and wait for things to recover. How soon that will take is anybody's guess.
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