Hi ~ my husband is being transferred for work to another city and so we put our house on the market in order to sell. currently we are under water on the house just because the market crashed where we live. we have been told by our loan company (Bank of America) that the value of our home is $189,000; however, we owe currently $202,000 on it (we're stuck in an interest only loan for the next 4.5 years). i talked with a realtor who was highly recommended to us and she said that if we had her as our agent she would list it at around $175,000. We just can't afford to pay a commission to a real estate agent so we have had it for sale by owner for almost a year now. we have dropped the price from $213,000 down to $199,900 currently but haven't had any offers yet. We just can't afford to go any lower and lose that much money on the house. We have virtually no savings except my husband's 401K (around $60K) and he doesn't really want to take out a big loan for 25K.
We are wondering if we should just rent the house out and then turn around and rent when we move? We do qualify for the HARP program according to Bank of America. That being said, we could get out of our interest only loan and actually start paying more principal on the loan. I just get nervous that someone will trash our house or not pay as we would be out of town landlords.
Our current mortgage payment is around $1300....we're barely breaking even with our bills and such. Have no other debts except about $5600 in CC debt.
Any help would be great appreciated!
What about using a local property mgnt service? My condo owner uses one, i send the rent money to the PMS and they handle any repairs etc.
are you sure you can get $1300 plus for rent on the house? What do similiar homes rent for in your area?
I know the person who owns my condo is loosing money every month. I can pull the property records, see what he paid for the place, see his mortage info and based on what I'm paying there is no way he is making any money.
For example, I pay about $800 a month, that covers: rent, water, HOA fee and PMS fee. (water, hoa and PMS are probably 200-300 a month) His loan is for $135 and he paid 187k. approx. Its an excellent deal for me, not so good for the owner but he is stuck, he cant' sell and all the condo in here retn for the same amount.
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You don't have the financial reserves to weather landlord troubles like repairs on the house, vacancies, or bad tenants--I'd do whatever it takes to get it sold. It'll hurt, but then it'll be done.
Alternatively, can your husband change jobs within your city, or not transfer, so you don't have to move?