Posted on: 16th Apr, 2008 10:03 am
We have a home we bought 6 years ago for 206k We have since taken out 2 equity loans, one for 35k and another for 20k. At the time our houe was worth this amount. but in the last couple of years values have dropped, and we are told our house is only worth about 215 on the market.
Can we sell our home for the 215k? what would happen with the remaining equity loan of 20k? Is this even possible? We also have to deal with realestate fees to sell.
My husband was laid off a while back, and the new job he took was a big paycut. we went from 107k a year to 85k a year. We have four small children, and a 3 bedroom house. We eventually need a 4th bedroom since we do have one girl. She is only 2 right now.
Are there any options. Our credit rating only a year ago as in the 700's and has since fallen dramatically because or debt to income ratios.
What options are there to sell this home?
Can we sell our home for the 215k? what would happen with the remaining equity loan of 20k? Is this even possible? We also have to deal with realestate fees to sell.
My husband was laid off a while back, and the new job he took was a big paycut. we went from 107k a year to 85k a year. We have four small children, and a 3 bedroom house. We eventually need a 4th bedroom since we do have one girl. She is only 2 right now.
Are there any options. Our credit rating only a year ago as in the 700's and has since fallen dramatically because or debt to income ratios.
What options are there to sell this home?
short sales are far more common these days. you ought to consult with a local realtor - someone you can verify is on top of the short-sale market. any realtor you engage is going to have to do quite a bit of homework - doing a market analysis is key, and will allow all of you to get a realistic picture of where you stand (balance owed in comparison to market value).
any realtor who represents you has to be willing to work with your lender to determine that company's willingness to go along with a short sale; further, the ammunition required to convince that lender is going to have to come from the realtor's digging.
you are correct about the commission due any realtors. frankly, in a short sale, they will be quite worried about their compensation. they may, in fact, ask that you confirm for them (upfront) just how much you are willing and able to pay. they may ask if you have funds independent of what "equity" is in the home. further, you may need to set up an escrow account to provide for the payment of realtor compensation. these are all legitimate questions and situations - not an easy thing to go through, nor to try to calculate; nevertheless, necessary - people cannot be expected to work to sell a home and not be compensated. you already know that.
of course, one of your options is to maintain as best you can. if you can negotiate with your lenders - for each loan - and perhaps reduce payments, then holding on to the house for the duration and hoping for a rebound in values may be beneficial.
if you're convinced that selling and moving on is your best bet, you need to be sure that your lenders are in the mix, in terms of who your buyer may be - that the person or persons are qualified to make the purchase; also, in terms of being made aware of precisely what you anticipate (and your realtor anticipates) the home will sell for.
by no means should you neglect your payments, unless you have no other choice. jeopardizing your opportunities in the future because you miss a payment would be completely the wrong move.
any realtor who represents you has to be willing to work with your lender to determine that company's willingness to go along with a short sale; further, the ammunition required to convince that lender is going to have to come from the realtor's digging.
you are correct about the commission due any realtors. frankly, in a short sale, they will be quite worried about their compensation. they may, in fact, ask that you confirm for them (upfront) just how much you are willing and able to pay. they may ask if you have funds independent of what "equity" is in the home. further, you may need to set up an escrow account to provide for the payment of realtor compensation. these are all legitimate questions and situations - not an easy thing to go through, nor to try to calculate; nevertheless, necessary - people cannot be expected to work to sell a home and not be compensated. you already know that.
of course, one of your options is to maintain as best you can. if you can negotiate with your lenders - for each loan - and perhaps reduce payments, then holding on to the house for the duration and hoping for a rebound in values may be beneficial.
if you're convinced that selling and moving on is your best bet, you need to be sure that your lenders are in the mix, in terms of who your buyer may be - that the person or persons are qualified to make the purchase; also, in terms of being made aware of precisely what you anticipate (and your realtor anticipates) the home will sell for.
by no means should you neglect your payments, unless you have no other choice. jeopardizing your opportunities in the future because you miss a payment would be completely the wrong move.
Hi msklar,
Welcome to the forum.
Cannot you make your payments? If so then you can think about selling the house but if you van make the payments then I shall suggest you not to sell the property because the market is down now so the sale price is also low. But it will rise again. So think twice before going out of your mortgage.
BTW if you short sale the house then you will still be liable for the due debt and the lender cam come after you for the deficiency judgment.
Feel free to ask if you have any further queries.
Best of luck,
Larry
Welcome to the forum.
Cannot you make your payments? If so then you can think about selling the house but if you van make the payments then I shall suggest you not to sell the property because the market is down now so the sale price is also low. But it will rise again. So think twice before going out of your mortgage.
BTW if you short sale the house then you will still be liable for the due debt and the lender cam come after you for the deficiency judgment.
Feel free to ask if you have any further queries.
Best of luck,
Larry
Larry has given very very good advise on the market value. If you can continue making the payments you are definatly better off waiting until the market rebounds.