Quote:
Originally Posted by Texlexic
Thanks for the great advice, all (except Gogar:-))
We started at the price set by a pro appraiser, and have dropped $5k twice. It's just a reality of the local market.
What sucks the most is, I've been here almost 8 yrs, never so much as late with a payment, and will still end up $20k underwater if it sells today. And, from what I've read, that will look the same as a foreclosure on my credit rating.
So, I've made my last mortgage payment here, and couldn't care less how big of a turd the bank has to eat. And, I'm in no hurry to "own property" again, for a measly $3000/yr tax write-off. I can save more than that renting a lux condo bicycle distance from my office. AND, get that 914 I so lust after...
|
Ah, well that certainly paints a better picture of your frustration/anger over the whole situation.
The only way that actually selling an "underwater" property would affect your credit is if you are not coming to the closing table with the difference. So, that tells me that you are trying to sell it via short-sale. I don't know what the price-point/market value of your home is, but $20k seems like a relatively small amount of money (or negative equity) to be trashing your credit over. You might see what the local rental market is like, and consider turning it into a rental if the monthly "hit" would be manageable (potential net rent vs. current mortgage payment).
If you can find a cheap rental for yourself while renting out your current property, you may ride out that $20k negative equity deficit to a net-zero or even positive equity position.
If you are dead-set on selling it via short sale, then I would drop the price to the absolute lowest that can be justified/articulated via comps/BPO. You will not be netting anything at the closing table in that scenario, and you have zero interest in what the house actually sells for at that point. Furthermore, if your agent doesn’t have an offer (or several) in hand within the first week on a short-sale, he/she is doing it wrong. Also, a short sale is certainly going to trash your credit. It isn't as bad as a full-blown foreclosure, but it’s close. The saving grace with a short-sale is that banks will lend to you (again) much sooner than if you had a foreclosure on your record (like 2 years vs. 5+ years). Just make sure you are familiar with your state's anti-deficiency laws, and know what your potential tax implications will be.
OH, and FYI: It is very likely that the bank won’t be “eating” anything at the end of the day (tax payers in general will). Actually, if you were paying PMI, you are probably going to be making them money.