Profile picture for jcka corbes

i need to know if i need to sell my house or have it rented.

I bought my second home 5 months ago. and im having 2 mortgage. I could not sell my 1st house since I am having high mortgage still. im renting it out presently. my mortgage is high compared to the prevailing prices of the houses for sale in my neighborhood. what guidelines do I need to follow if I have to decide either way. thank you.
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April 09 - Chicago
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Answers (10)


Sit down with a knowledgeable Realtor and have them run a market analysis of similar homes in your neighborhood to make sure you are correct on the pricing. They can do the same for the rental prices to see if you could increase the rent on the property to help cover the higher mortgage.

A short sale could also be a possibility if the mortgage is greater than the value of the home. I would definitely also talk with a Real Estate attorney.  
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April 13
Hello,

I would suggest a sit down open and personal discussion with a Realtor.  Call or email any of the broker that responded here on Zillow, myself included.

Good luck!
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April 10
Have an agent do a market analysis and see if selling is possible. For guidelines Id reach out to a RE attorney on this.
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April 10
Hi Jack,

To sell your home you may need to consider a short sale. This is where the lender agrees to take less than what is owed on the property.  You do have to qualify for this and should speak to an expert that has assisted in many short sales.  You need experience to help you. 

Another possibility is to refi the home with some of the new loans that have lower interest rates.  You should speak to a lender. There are a few programs out there that will refi even with owing more on the home.  Again, you need to speak with an expert.  

You can also sell the home and come to the table with money.  While not a desirable option, sometimes it is the only option. 

At the end of the day, you need to speak to a local expert that understands all options and that also knows your area market and what is happening there. 
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April 09
Profile picture for wetdawgs
If the mortgage is higher than the current value of the house, a short sale is not the only option.  In fact, when you qualified for a second mortgage I suspect the lender worked very hard to ensure this wouldn't happen as "buy and bail" is not a pretty option.  Short sales are not a given,  but one has to qualify by demonstrating financial hardship.  If you just purchased a few months ago, that will be tough unless you've had a dramatic loss of income, major medical issues, death, divorce or other types of hardship.

The other options?  Sell and bring money to closing OR keep renting covering hopefully a small negative each money as market value improves.

Good luck.

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April 09
The question is confusing. I would speak with your lawyer and Realtor. They can help.
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April 09
You may qualify for a short sale.  [phone number deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
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April 09
Profile picture for jcka corbes
thank you. this is very helpful
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April 09
I am not completely clear, but if your mortgage is higher than what the value of your house is then you cannot sell unless you do a short sale where the bank takes a loss and you have your credit damaged.
You can rent it out until the market improves. Contact a couple of agents to do a market analysis to see what the value of your property might be. Also see what the house might rent for. If the rent does not cover the mortgage then is that ok for 2-3 yrs??
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April 09
Understand you have 2 mortgages... The first mortage loan to value ratio being high and you cant cover the mortgage payment with the rent being received you could consider a short sale. Before you consider the short sale option ask yourself "Are you in eminent default"? If you feel that its only a matter of time before you default on the mortgage... cut your losses and sell it as a short sale. Its really comes down to making a business decision on whats best for you before the inevitable happens and you end up throwing alot good money after bad. I hope this helped you!
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April 09
 
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