Need some opinions on possibily getting rid of a home quickly to move out of state

Iceman · Jan 3, 2008

Long stroy short I may have the possibility to move out of state and it is something I have wanted to do for years, throw in the fact my GF (who I will marry shortly) has a better job oppurtunity by relocating to this state but my problem is I have a $250,000 home that I just bought and have little to no equity in it. To rent the home I would need $2,000 a month and that is too just breakeven and that isnt going to happen in the town I am in. I do have 2 other rentals that are a headache but I am okay with them as they are priced reasonable (around 1k) but I dont make any money off them as they breakeven, they are a longterm investment for me. If I put it up for sale in this market, with RE fees I will take a big hit and it will make the move not worth it.

So my question is what to do? I could honestly up and go tomorrow but I am essesntialy a slave to my home (which I love). I FINALLY have over a 700 credit score that took a long time to get with zero marks on it in over 6 years. I have debated this up and down and back and front and have no real answer. I figured all these great minds at the RX may be able to help me.

What do people do in this spot? I have looked at every angle possibile but not sure if I am missing something. Do banks buy back homes at a reduced cost and let you make monthly payments on the amount you lost? Let's say you owe 250k and they buy it back for 200k can you pay 50k over x amount of years? I am open to any suggestions because I really dont have an answer. I assume a lawyer would be able to help and I am looking into scheduling an appointment with one. Bottom line this oppurtunity is now and I have to start planning it and I would hate to think the only think stopping me is my home but it is. Has anyoen else dealt with something similar or anyone have an answer. Thanks fellas.

texansfan · Jan 3, 2008

Look in the phone book under arsonist.

Iceman · Jan 3, 2008

texansfan said:
Look in the phone book under arsonist.

hno:withoug breaking any laws.

WVU · Jan 3, 2008

banks will only buy them back "short sale" style if it is their only out. They are not in the real estate business and they do not want your house. A short sale would ruin your credit so do not even consider that route.

The only thing I could say is to sell your house and get what you can out of it. You will not get 2k rent on a 250k house anywhere.

geeze · Jan 3, 2008

If you have a 250,000 house and a 1st of 200,000 and a 2nd of 50,000, with no equity, and you hand the keys back to the holder of the 1st, that should do it.

I don't think there are deficiency judgments allowed against a house.

The only collateral is the house itself. (I could be wrong.)

djmatt · Jan 3, 2008

Ice... what are the terms on your mortgage(s)

joeyfitzclick · Jan 3, 2008

Rent the house for $1200 a month and eat the negative monthly cashflow.

WVU · Jan 3, 2008

joeyfitzclick said:
Rent the house for $1200 a month and eat the negative monthly cashflow.

are you currently eating negative cashflow on any of your properties? I am on 2 of them but not by much

The_Man · Jan 3, 2008

You got in over your head with a local didn't ya. No need to run just be up front and honest and work out a payment plan and everything will be okay.

buddyboy · Jan 3, 2008

First. You THINK your house is worth $250,000... only when you sell it will you know the true market value.

sell it for whatever you think is reasonable

talk to a good accountant, you should be able to claim some of the losses on your taxes and carry them over to following years.

also since you are moving you can claim some of those expenses as well.

if you are still in the hole after all of that,,, well think of it as paying rent.

sometimes it is best to learn lessons the hard way.

charliepeete · Jan 3, 2008

what city is it in??????????????:nohead:

chick'sfridge · Jan 3, 2008

Ice:

Maybe I missed it, but did you put in on the market. There are some people out there buying. There are some absolute steals, and a percentage of people are looking. Anything sold in your area recently? Could it become another rental? Obviously January in Michigan is a difficult time to sell/list/rent. Before I gave it back to the bank, I would consider every option. And yes your credit will take a hit, if you do walk away. I believe seven years is the jail time for foreclosure's. The good thing is you don't have a ton of $$ in it. If you lose $10-$20K (downpayment) you will survive. If you decide to foreclose you could milk it forever re: monthly mortgage payment. The bank wants no part of your house and would only evict after a very long term non payment schedule. Best of luck, whatever you decide!

djmatt · Jan 3, 2008

buddyboy's got some good advice.. you know when you're renting that whatever improvements you make are write-offs..

i've known people in the past to take advantage of this.. if you can see that right angles.. lots of homeowners are going to be getting crunched.. expect a decent bailout from the feds.. but don't depend on it

joeyfitzclick · Jan 3, 2008

WVU said:
are you currently eating negative cashflow on any of your properties? I am on 2 of them but not by much

5 figures a month

I was I was joking

CHOPTALK · Jan 3, 2008

joeyfitzclick said:
5 figures a month

I was I was joking

what about now?

geeze · Jan 3, 2008

Is there any way to walk away without it being an actual foreclosure?

Can you sell it to the bank or the broker for say $1 , or just quit-claim it to the bank?

Would that avoid actual "foreclosure" thereby preventing the credit rating negative hit that foreclosure causes?

Anyone?

Thank you for your informed opinion.

I

fhmesq44 · Jan 3, 2008

Is your g/friend getting a new job with a new company or new job with the same company? If it is relo with the same company see if you can swing them buying the house under a relo sale if you can't sell it.

Alternatively, eat the losses via either sale or rental. You are f*ed too even if you make money on the sale since you haven't lived there for two years.

fhmesq44 · Jan 3, 2008

geeze said:
Is there any way to walk away without it being an actual foreclosure?

Can you sell it to the bank or the broker for say $1 , or just quit-claim it to the bank?

Would that avoid actual "foreclosure" thereby preventing the credit rating negative hit that foreclosure causes?

Anyone?

Thank you for your informed opinion.

I

deed in lieu of foreclosure isn't much, if any, better than an actual foreclosure. You can't just deed property to anyone, there has to be an acceptance of the deed.

HawkN-Flight · Jan 3, 2008

If your other two rentals are doin fine and you can make a profit by selling them. Then sell all three properties and hopefully you get out even. If it isn,t going to work , you might have to take a hit for 20 or 30 k , but cut your losses and move on.

DennyCrane+ · Jan 3, 2008

Unless you have 15K sitting around a realtor will eat you up in comm and closing costs. Look into renting with an option to buy. This is great for people who are rebuilding credit and or who dont have the 10% down to get into a house. Take 5K down and if you need to make the payments the same as your own. Buyer is responsible for all taxes, water, maint,insurance as if they owned it. After 1-2 years they have the option to buy at current price or current value (whichever is greater) If not this slump should be out enough for you to sell it. Usually these work out because people take care of properties they are going to own. Other then that FSBO but you will be attracting the same demo. of people.

Need some opinions on possibily getting rid of a home quickly to move out of state

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