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What to do if can't sell your house?
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Maddie180
LIF Adult
Member since 2/07 1992 total posts
Name:
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What to do if can't sell your house?
We really need to sell our condo, but we would never get what we need to for it. Is it worth it to pay extra each month to bring down the principal? Right now I do one extra payment a year, but I wasn't sure if I should do more than that.. If we do that, we won't be able to put that much in savings monthly. I don't know what else we can do, since we just refinanced. Thanks!!
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Posted 3/22/13 9:44 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
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Re: What to do if can't sell your house?
Depending on rules, sometimes it makes sense to rent it out.
We own now, but prior to that, we lived in a rental that was a condo for a couple of years.
IMO, it is a great market for rentals right now.
It can be a PITA being a landlord, but I am sure there are plenty on here who can give you some good tips.
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| Posted 3/22/13 9:48 AM |
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Re: What to do if can't sell your house?
Have you met with a real estate agent to get information on value, as well as your options?
Sometimes what consumers think about the value of their home isn't in line with what the market is showing. And you really need to look at the area and your specific development and unit to figure out demand. I sell a lot of condos and co-ops, and some of my listings have sold very quickly recently.
When you say you can't get what you "need" - what do you mean? Do you mean you can't get enough to satisfy your mortgage and walk away even without bringing $ to the table? Or do you mean you can't walk away with enough cash to get into the next house?
I don't know what your personal situation is, as to how much money you have saved, how much debt you have, what your credit is, but if you can qualify to buy the type of house you want (assuming the condo is sold), it may be well worth it to you to sell it for a loss, if that is necessary, even if you need to bring a little money to the table. You can get an FHA loan for as little as 3.5% down, so even if you have to to a smaller down payment for your next home, and roll closing costs in to the mortgage, it may be worth it. There would be an advantage to buying now while rates and prices are still relatively low. But I am starting to see prices come up. Whatever you lose on your condo sale, you will probably make up by buying your next home before rates and prices rise.
But I think your best bet would be to consult with some real estate AND mortgage professionals, if you haven't taken that step, to find out what would be the best strategy for you, even if it is a more long-term strategy and not immediate. But you may be pleasantly surprised! You definitely want to make sure your assumptions about what you can and can't do are accurate!
Let me know if I can help or answer any questions! You can always FM me or get me at [email protected] or (516) 587-7618 (cell).
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| Posted 3/22/13 9:59 AM |
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Re: What to do if can't sell your house?
Posted by MorningCuppaCoffee
Depending on rules, sometimes it makes sense to rent it out.
We own now, but prior to that, we lived in a rental that was a condo for a couple of years.
IMO, it is a great market for rentals right now.
It can be a PITA being a landlord, but I am sure there are plenty on here who can give you some good tips.
I definitely agree that the demand for rentals is sky high on Long Island. But I would advise the OP to check with a mortgage professional about the rental income issue, if you need that income to count when a lender calculates your debt-to-income ratio.
There was a thread on this the other day where I mentioned this, but I know that buyers often need to have a certain amount of equity ... one of my clients was trying to sell a co-op that he was underwater on, and explored renting it in order to purchase a new home. But there is a rule (regardless of lender) that he would need 30% equity in a co-op in order for that rental income to count. That may not be true of all types of properties and in all situations, but a mortgage professional would need to be consulted. And of course, not all condos allow rentals, or some put restrictions on it (you can only rent for x amount of time). And being a landlord has it pros AND cons, of course!
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| Posted 3/22/13 10:08 AM |
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Maddie180
LIF Adult
Member since 2/07 1992 total posts
Name:
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Re: What to do if can't sell your house?
Posted by MorningCuppaCoffee
Depending on rules, sometimes it makes sense to rent it out.
We own now, but prior to that, we lived in a rental that was a condo for a couple of years.
IMO, it is a great market for rentals right now.
It can be a PITA being a landlord, but I am sure there are plenty on here who can give you some good tips.
We have somebody renting a unit in our building and it is the worst thing ever. Despite numerous credit and background checks, it has not been good with the new people that live there. That has deterred me from ever renting out my place to anybody unless I know them... Thanks for your response though - I appreciate that!!
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| Posted 3/22/13 11:27 AM |
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