to short sale or not?

hello everyone..stumbled upon the website and was happy to join.. i was researching short sales and it seems like there are alot of knowledgeable people on the boards so i am looking for some opinions....we own a condo and purchased at a VERY high price..obvisiouly the market has changed and is now not worth what we owe. We just had a baby and our income has decreased..we are trying to sell but are going to have to come up with at least 15k just to get out, plus the loss of our entire down payment. I was wondering if anyone else has been in our situation and am looking for some good advice!! apologies for the run on sentences..new mama lacking on sleep!!

Re: to short sale or not?

Congratulations on your baby! I don't know enough about your situation to really offer advice, but wanted to ask - Have you consulted with a realtor or otherwise accessed recent comparable sales so that you know for sure that you owe more than the home is worth?

Also, even if you do owe more than the condo is worth in today's market, there is no guarantee that your bank will allow you to do a short sale. Banks don't need to approve it. It's easier to persuade the bank if there have been real hardships (illness, divorce, job loss -- some drastic change in circumstance) and if the owners can no longer afford to stay in
the home. You mention a decrease in income, but not how much, and that is not always a hardship (for example, if a parent chooses to stay home with a child or someone changes careers and takes a pay cut). Are you currently paying the mortgage and you can afford to stay in the condo, but just prefer to buy something different/bigger?

Also, while a short sale can be a great solution for a homeowner in financial distress who can't afford to keep their house, there are downsides, too -- e.g., it affects your credit, your ability to buy another house for a certain period of time.

I would definitely consult with experienced professionals -- realtor, attorney, etc. - before making any decisions. Let me know if I can help!

Re: to short sale or not?

HAve you spoken to your bank about lowering your mortgage payments? Maybe refinancing?