How do I sell rental Property which upside down?

Question

I have a home which is approx. 10k above the appraised value. I don't have tenants and I would like to get rid of it. I'm current on the mortgage. The Home is Georgia. Can any one offer some advice what I could do with this property?

Answer 1

You can do a few things with your property. If you sell it in the current market and owe more than it is worth, you will have to pay the difference in escrow when you sell. Before title can change, all of your lenders conditions will have to be met. You can also try to short sell. This is where you ask the lenders to take what you can get for your property instead of what you owe them. It saves them the hassle of foreclosure so sometimes they will accept this type of sale. It does negatively affect your credit. Good luck with whatever you do.

By the way, I couldnt disagree with the yogurt guy more. Why take the risk of rent in a down market. The house is already upside down, and who knows how much more this market will turn down. Even if you are sure you can keep the house rented, where if you dont you will also have to add the mortgage payments to your losses, even if you can be even collecting rent against paying PITI, and even if you can find a good renter that will keep your house in its present condition, pay on time, and leave when you need, you will still be holding a losing investment.

Answer 2

2

Answer 3

Why bother selling it? When you sell it after all the commission and other fees and taxes you will end up with loss and not gain. So I recommend you just rent it out.

Sincerely,

Vladimir Rozumniy
Sr. Vice President
American Mortgage and Real Estate Group
Tel: [phone]
Email: [e-mail]
http://www.amregroup.com

Answer 4

why not just rent it out? You'll earn residual income and you're property value will continue to go up. It's a win-win situation...You'll gain assets in the process...getting rid of it would be the last thing you should do...it'll also be the dumbest in my opinion...