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Replies (4)
- wetdawgs
- Contributions:26830
It is hard renting a property from far away. I almost was stuck in those shoes
The states that are non-recourse are for primary residences, and clearly this doesn't qualify. Can you document hardship related to qualification for a short sale? (It is much harder to claim hardship when it is a rental vs your primary residence, IMHO).
What basis are you using to say it is now worth about 15 k less than the mortgage amount? If Zillow's Zestimate, remember that Utah is non-disclosure so the ranges of Zestimates vs sales prices will be much higher. You may try to get a couple of CMAs.
A foreclosure is always an option.
I'd probably just make up the deficiency by a small loan from another source if just 15 k.
The states that are non-recourse are for primary residences, and clearly this doesn't qualify. Can you document hardship related to qualification for a short sale? (It is much harder to claim hardship when it is a rental vs your primary residence, IMHO).
What basis are you using to say it is now worth about 15 k less than the mortgage amount? If Zillow's Zestimate, remember that Utah is non-disclosure so the ranges of Zestimates vs sales prices will be much higher. You may try to get a couple of CMAs.
A foreclosure is always an option.
I'd probably just make up the deficiency by a small loan from another source if just 15 k.
- A. "Nickie" Rucker, "Listing or Buying"
- Contributions:19
Hi! I only know about Florida short sales. You need an experience short sale person/agent to do this for you. The state of Florida allows 3 persons to do the negotiations. Realtors, Mortgage & Lawyers. Get someone who has the experience & can work in your favor to get the deficiency waved / signed off on at the end of the negotiating, that happens all the time. The banks do not want to foreclose these days and shorting the house is the best way for everyone. Your Short Sale negotiator can be in one state and the house in another. If the loan is with Band of America for example they have the same rules for negotiating thru out the country.
- Denise Martin, "Denise Martin"
- Contributions:57
Sorry to hear about your dilemma. I have a brother who purchased a home in Tooele a few years ago and is in the same boat as you. Unfortunately, prices in Tooele and Grantsville have declined substantially over the past couple of years.
What my brother decided to do was offer the property as a "Lease with the Option to Purchase." This attracted a very quality tenant who is paying his house payment plus has made some improvements to the house and yard (in anticipation of owning the home in a year or two.) They established a sale price equal to the loan amount for 3 years from now.
What my brother decided to do was offer the property as a "Lease with the Option to Purchase." This attracted a very quality tenant who is paying his house payment plus has made some improvements to the house and yard (in anticipation of owning the home in a year or two.) They established a sale price equal to the loan amount for 3 years from now.
- Michael Helton
- Contributions:456
1) Get it appraised (a real appraisal, not the bull that a Realtor does) to see exactly where you are on the value.
2) In a shortsale your Fico is going to take around 125-180 point dump and it will be on your record for 2 years. For a foreclosure it is 150-300 points loss and 5-7 years. This is serious and you should speak to your accountant before going forward.
I agree with dawgs that 15k seems to be a really small amount of money to trash your credit over.
3) What about being creative in your lease option/price as suggested earlier? If you can ride this property out and sell in a better market you should be better off. The rental market is actually very strong right now so I am surprised you cannot rent it. Contact a few other preporty management companies and see what they say.
How to get rid of a property that worth less than the loan amount
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