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To short sale or not? That is the question.

I am contemplating short-selling my home.  I live in Las Vegas, Nevada, a city with a real estate market that will likely not see great appreciation anytime soon.  At the moment, my home is worth approximately $150,000, and I owe $188,000 on the loan.  Thus, I am underwater by approximately $38,000.  (I paid $250,000 for the house in 2007).  I can probably rent a place for $1000 per month.  So, there would be definite monthly cost savings for me versus paying my $1324 mortgage.  I have a 5.625% rate on my loan.  I don't see myself living in this house for more than 5 to 7 years, if I can help it.  However, I currently have no pressing reason to move.  In addition, I can afford my mortgage.  My credit scores currently are great.  I would be willing to live with the negative credit implications of a short-sale for a couple of years.  But, I would definitely like to buy a new home within three or four years.  Finally, I would only go through with the short-sale if and only if I can get the deficiency totally waived.  From a financial perspective, does it make sense for me to short-sell my home?  Thoughts?  Opinions?

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January 21 2011 - Las Vegas
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Hello mtsaunders,


See my post to your other question.
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January 21 2011
See my post to your other question and while you are at it Google "foreclosure fraud cases."  Get educated.
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January 21 2011
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January 23 2011
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C'mon Linda, now you're making it too easy. "How to avoid foreclosure" is to visit your website?
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January 23 2011
Profile picture for the_country_hick
"However, I currently have no pressing reason to move.  In addition, I can afford my mortgage."

A short sale is approved for those who have problems paying the mortgage. You have neither a problem paying the mortgage nor a half decent chance of the bank saying yes.

Find out if your state is a recourse or non-recourse state. The figure out why that might matter.
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January 23 2011
Doesn't sound like you should go for a short sale at the moment. If you are comfortable with the mortgage payments and don't feel the need to move, there's really no reason for you to attempt a short sale. Yes, you are upside down, but by a relatively small margin. Lots of homeowners are 60-75% under water in Las Vegas. In 5 to 7 years, you could accumulate more equity and the market could make a small turn-around. You could also consider to refinance to a lower rate. The new government sponsored refi-program may just be the perfect fit for your needs -look into it.
Also please consider that once you apply for a short sale, the bank will want to know every little detail about your financial situation -including exact income information, tax returns, utility bills and details about all of your assets including bank accounts, investments, cars and real estate. Make sure you first consult with a lawyer.
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October 29 2011
 
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