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I am moving overseas in about 6 months, and am wondering what I should do about my house. Opinions?

I'm moving overseas in 6 months and wondering what to do about my house.

I bought the house 5 years ago for $120,000.  I currently owe $60,000 on the first mortgage and $35,000 on the second.  The house is worth maybe $103,000.  

I can't refinance because the 2nd lender refuses to subordinate to a new 1st loan, even though they are subordinated to the current one.  My current loans are about 6%.  

So, I have maybe $5000 equity...if I pay a real estate fee, there goes any profit.

I could rent it out, but I'd have to match the rental income in order to cover the mortgage...and I don't really see the point, since I don't expect to live here again.  

Any advice would be very much appreciated!!
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April 04 2012 - US
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Answers (5)

Best Answer
I would speak with your lender(s) again and also your local loan broker. There are some recent guideline changes to allow for owners who are under water or may soon be under water. Tell your lender(s) about your plans to relocate overseas and they may be willing to work with you. Good Luck!
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April 05 2012
The slight amount of leeway you'd get from a refi would not be worth the hassle--if you are not even in the same country, it does not make sense to try and hold on to the property and collect rent--your proceeds would most likely pay for no more than the mortgage and expenses.

Spruce up the place as best you can, and put it on the market--you might consider checking into a "no rep" broker if you have the time and inclination to handle showings yourself--you can save half the commission that way.
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April 05 2012
Put it on the market.  Our inventory is so picked over and stale having a new home on the market and priced close to right might surprise you with the showings you will get.  We are seeing the new ones sell while the older inventory is being reduced and still sitting on the market.
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April 05 2012
Speak to your mortgage company.  You may be able to get a loan modification if you plan on moving back in the near future.  If not you may qualify for a short sale.  This is where you need to begin.  Good luck!
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April 05 2012
I guess that renting, as you well said, is out of the question.  You do not say how long you will be overseas, so even a short sale may be the way to go if you are not able to get enough money to pay your loans.  Have a word with your primary lender and see what he has to say when you explain your situation.  Even if you were able to refinance, and not knowing how long you will be overseas, rental may not be an option.
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April 05 2012
 
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