Upside down on a house

[nsda1001]

I've had a home (cookie cutter sub division) in Orlando,FL for about four years paying $1700.00 monthly mortagage. I was ready to sell the house two years ago but has dropped in value far less than original purchase about ($65,000 less) I purchased a home in Georgia (forced to move for employemnet reasons) but currently paying on my Orlando home in the hopes the market will turn and I can sell and least break even. Realizing I might have to cut my losses, what options should I consider? even if ugly.

Greatly Appreciated,

Happy St.Patricks Day

[JJohnson1985]

You may want to rent it out. Have a property manager take care of it since you are out of state, and try renting it. See if this is financially feasable. Besides that, you can sit on it like you have or sell it and take it on the chin.

[Mike Taylor]

Yeah, you could rent it out, do a lease option to buy and offer it for sale all at the same time. Whichever happens first, take it. Good luck.

[TomAnto]

This is a bummer. The best thing you can do is calculate your carrying cost. In mortgage payments alone you spent $20,400 in a year holding on to it. If your taxes are $6,000/yr now you are at $26,400 plus utilities, insurance, maintenance and other expenses you probably run close to $35,000/yr just to hold on to it.

Then compare to the benefits and burdens of renting it out.

This market will stabilize in the next two years but you won't see it return to levels of a couple years ago for a long time. I would dump it. Your costs to carry the home over the years are likely to outweigh the loss you will take on the initial sale. But one can never be 100% sure in real estate or any other economic market.

[brianlaughlin]

There are a lot of good suggestions from other posts. The ugly might be to walk away. This article I posted discuss this and even services that pop up to help people do the same. http://www.crystalclearmarket.com/?p=31.

A short sale might also be an option if you can show your hardship to the lender. That might not be as ugly.

Good luck,

[TomAnto]

That will wreck your credit for a long long time. Walking away from a mortgage is a guarantee that you'll be locked into high interests rates or credit denial for an indefinite time to come. It shows complete abandonment of your responsibilities and is the worst advice I've ever seen posted here. Any alternative is better than that. Generally, short term satisfaction leads to long term misery. That is a life lesson, not just real estate.

[waynelong]

Walking away is a very last resort. Rent it, Sell it and pay the difference, Settle with your mortgage company. Sometimes there is nothing left to do but walk away but I would not do that until I had to. This market may turn quicker than is predicted. No one here has a crystal ball so do all you can to make it work. That is my .02

[waynelong]

Check out this thread (http://www.realestateforum.com/showthread.php?t=7398)

[PPP]

Don't just walk away - you'll jeopardise your future credit ratings and borrowing possibilities. If you decide to sell then talk to your mortgage company.

Look at renting the property, do a thorough investigation into all costs (management company, taxes etc.) and see what you will be left with at the end of the day.

Sometimes you have to admit that things didn't come out right and walk away - don't throw good money after bad. It's a tough decision but it may be the one that's right for you.

Ultimately, decide whether it will cost you more to hang onto the house than to cut your losses and move on. Is it worth the money and the hassle?