Profile picture for Rob0424

Anything I can do to help me?

Currently I have a 30yr Fixed Mortgage @ 5.25%. I am about 5 years in and owe pretty much exactly what it is worth.
Owe: $85,560
County Tax Appraisal: $85,900
I want to try and sell and move into something better, but don't see myself being able to get any more then $85,000. I need to get something out of the house, so I need to try and get my principal down. I am looking for like a 2-3 year plan. Does anyone have any suggestions that might be able to help me. Thank you
  • March 26 2010 - Cleveland
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Answers (5)

Profile picture for blue screen exile
There is no "free money"; you will have to work for it and stop spending it.

Even if you could sell for 10% more, you wouldn't get any money out of the house.  You still need to pay Real Estate Agent/Broker fees (about 6%), termite inspection/repair, a portion of the closing costs, and possibly other repair/concessions to get the sale to close...

You are not far enough underwater to want to consider a short sale.

You should just consider your payments "living expenses", and not plan on moving; or if you can live more affordability someplace else, you should just plan on bringing money to the table in order to close the sale.
  • March 26 2010
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Profile picture for SoCal Engr
Your basic options are...

Sell your house now for what you can, and then rent for a while and build up a cash reserve.

Hold onto your house and hope the value goes up, and still try to build a cash reserve.

If you think that the market in your area will recover in the next 2-3 years, then holding onto the house may make sense. If you think that the market still hasn't found bottom, then paying down the principal doesn't make sense if the value is going to drop lower than it is now (i.e., since you know you're going to sell this house, is it time to cut your losses?).

Part of the info you will also need to know is what kind of rental payments you would be looking at (i.e., are they less than your mortgage?) and what, if any, tax implications you would have if you became a renter vice owner (i.e., what impact does not being able to claim property tax and mortgage interest have on your taxes?).
  • March 26 2010
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Profile picture for Rob0424
I have already looked into my homes value and what I could probably sell it for. I would say it would max out at $85,000. Thats why I am trying to figure out how I could get my principal balance down quicker then it is currently.
  • March 26 2010
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Profile picture for DaveAndersson
Contact some real estate agents in your area and have them do a CMA (comparative market analysis) for your home. This will tell you where you stand in comparison to similar homes in your area. You could be 10% above tax assessed value or you could be 15% below the value.
  • March 26 2010
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Profile picture for Don Greenberg
Typically what the county appraises the property at less than what the home is worth. Have you looked around to see what other properties have sold for recently (within the last 6 months). Have you spoken with an agent so they can give you an assessed value of the home? Going by what the property appraiser says your home is worth is not always a good way to determine what you can sell your home for.
  • March 26 2010
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