Profile picture for Red81

Severely underwater in Orlando. We can afford the home but want to move. What should we do?

We would like to be in a better school district and the neighborhood has really changed. We would like to move to a better neighborhood. We are not having any issues paying for our home but there is no way we will be able to sell it in this market especially for the amount that we still owe on our mortgage.  
  • July 12 2010 - Metro West
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (10)

Profile picture for Blue Nile
Not to mention, the bubble wouldn't have been so bad if the members of NAR had not outright lied about the condition of the market during the rise and peak of the bubble...

But what to you expect from NARcissists?
  • July 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for shasta_steve
The main problem is you are in Florida.  If you were in a non-recourse state like Arizonia or California you would have many more options.   If you walk or do a buy and bail, the bank will most likely pursue you for more money. 

Now I agree that most of the "help" out there for distressed homeowners is for people who made questionable decisions in the first place.   As the government usually does it rewards bad behavior and punishes good. Many responsible homeowners now find themselves trapped.  It is not only those who want to move out of their neighborhoods but those that need to move to take other job oportunities. 

As far as the "obligation of paying your mortgage", I feel that is a double edged sword.  Yes you agreed to pay your mortgage but I am sure you had no idea that the same people who wrote your mortgage were also writing 80/20 loans and no doc "liar" loans.  These same people who are crying about people walking away are the very same people who caused this crisis in the first place.  There is simply no way prices could have risen so fast if it had not for mortgages that were stupid easy to get. 
  • July 14 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
You are definitely not alone. It is frustrating to know that a large portion of the bailout money went to the most irresponsible buyers. Hang in there. It will take time, but the market will get healthy again.
  • July 14 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Red81
Thank you for all of the responses! As far as renting goes we have a mortgage of 2,100 a month so I doubt anyone will rent for that when there are houses selling in our neighborhood for 90,000 and renting for 1,200. As far as coming up with the difference in cash at closing....we bought our house for 282,000 and have only owned it for 4 years so our principal is still very high. Zillow has it listed with a value of 127,000 so we would have to bring A LOT to the closing to cover this difference. I am just surprised that there is no help for people who just got screwed by the collapse of the housing market and yet people who made very poor decisions like ARM mortgages are being given help. 
  • July 14 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I think that renting your home would be the best option at this time. You are to be commended for fulfilling your obligation of paying your mortgage. Too many people are not paying their legally contracted mortgages and this causes problems for everyone else.
  • July 13 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I agree that you're better off renting it out than selling it right now. Your other option is to wait out the market but I really don't suggest you sell it in this current market.

Wayyy too much supply and not enough demand. Especially with all the short sales and foreclosures.

  • July 12 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
Without a hardship, the bank will probably not give you a short sale or loan modification. You need to explore your options and decide if you situation warrants the risk of making a change. Before you make any big decisions, please consult an attorney to see if your state allows deficiency judgements. If it does, the debt may follow you and you might have to declare bankruptcy to try to cancel the mortgage amount owed. Get all the information you can before you decide.

In the end, the bank wants their money. They don't really care if your neighborhood is turning or that the house is too small as long as you keep paying. Unfortunately, they are not interested and would rather foreclose than try to work with you on any level as long as the checks keep coming.
  • July 12 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You could just rent your current home for a few years. Or you could come up with the difference at closing which might sting a little.

  • July 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Based on your description here I believe your choices are limited.

Short Sales are primarily considered under hardship circumstances.  Are you sure you do not qualify for a hardship?  There are some circumstances where you can ask for a short sale for a move or relocation to another area for work purposes.  Consult your lender for those guidelines.

The other choices deed in lieu, strategic default, or foreclosure will impact your creditworthiness that will make it almost impossible to qualify for another home purchase. 

Rental is an option but can you rent for enough to cover your note and expenses?  Banks are reluctant to qualify you for another loan on another house unless you are in the "business" of rental properties.  There have been some strategic defaults using this method so Banks are very hard on qualifying  buyers for these types of loans.

The "move" to a bigger or smaller house in a better school district or neighborhood is going to be as out dated as a VHS tape very soon. 

You may wish to have a consult with a Real Estate Attorney, call your lender and tell them your issue, and contact a Realtor for a current comparable evaluation of your home.

Think about doubling up on your payments if you are able to do so and pay down the principal balance as soon as you can and when and if the values begin to rise you may find your self in a positive equity situation sooner than you had imagined.  Good Luck.

Gay Middleton
Realtor
[contact info removed by moderator]
  • July 12 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
As you are able to pay the mortgage, there are not as many options for you.  These are the ones I can think of:

1.  Rent it and purchase a new home.  You have to have the financial strength to be able to carry both mortgages (plus taxes/insurance) for some time, and can't immediately forecast rental income.

2.  Sell and bring the money to the table to make up the difference.

3.  Strategic default, and not be able to buy for 7 years.

4.  Stay where you are.
  • July 12 2010
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.