To Dump or Not Dump Condo for a Large Hit?

**Melindalou7** · 02-17-2009, 12:48 PM

Recently, my company announced that they were relocating my office to St. Louis, MO. I don't own any property, but my fiance owns a condo with a current loan payoff of $103,000. The condo is in a complex that has gone rental since he initially purchased it, due to the current market. It's a nice condo, but a marketing nightmare due to that issue. My company's move package offers several homebuyer options such as a 5% bonus (taxed, so we get about 60% of that) based on the sale price of the home if we can sell it ourselves and they pay for all of our costs related to selling it-i.e., getting a realtor, inspections, etc. We have a buyer-a guy who works with my fiance-and his offer is $90,000. Given the current market and what's available, this is fair, but it's still a $13,000 loss for us. We would have the 5% bonus and about $3,600 extra in lump sum assistance from my company to apply towards that loss and my company is fine with having my name added to the deed as I'm not currently on it. My question is, as someone who knows very little about the buying and selling of property and it learning in a really fun economical climate (sarcasm intended), is this loss worth it? I have a job offer in our current town that would pay pretty much the same salary that I make now for very similar work. Do we take the hit and get rid of the condo while we can or do we sit on it for a few years and wait to see what happens? We like the condo and though we do eventually want a home, it's not like we have to have one by this time next year or throats will be cut. On the other hand, we know the condo being in what is essentially an apartment complex is a huge negative from a selling point-we're worried we may never have this opportunity again and will wind up stuck with this condo until we die-whether we rent it out or live in it forever. There are a handful of owners in the complex-all looking to sell and getting nowhere. I should mention that in terms of living in our current town vs. St. Louis, we're ok with either option. The big thing is this condo and whether or not we wait out the current conditions in the hope that eventually we could come out whole or we take the hit and get out of it while we can. So what do we do-suck it up or wait it out?

**donrock** · 02-17-2009, 11:27 PM

I would suggest thinking about doing a lease with option to purchase. If one of the renters in the complex wants to be an owner it might solve your problem. There are a lot of benefits to the owner in doing a L/O as well as for the tenant/buyer. See my blog link below in the sig to read a report about L/O which will give you all the pluses and minuses of doing one with your property. After reading it PM me or post if you have questions.

Good luck,
donrock

**Greg** · 02-18-2009, 07:25 AM

Renting your condo out of town can be a real pain plus renters tend to live hard on a place so when they are done the condition will not be what it is now.

If the market continues to go down the value might be considerably less.

If you decide to buy a house in a year or 2 will this mortgage payment limit your ability to get another place?

If you lose this place it will definitely affect your ability to purchase.

You have a buyer ready to buy your unit which is a godsend these days. You may not be able to find a buyer next year.

Sometimes, taking a loss is the smart way to go but only you can make that decision.

**lexusolution** · 02-18-2009, 11:26 PM

If you rent it out will you be able to make a monthly cash flow from the property. If so then you can rent it out and have someone pay down the mortgage.

Also banks are more willing work with you on the mortgages. Give them a call and see what they would be willing to do. At time banks will give you a forbearance meaning they will write off a portion of your loan and have you owe a lower amount.

Secondly, if are there people in the city qualified to purchase a property at that that price? If not what price is that price. I would try and negotiate a short sale for the property.

if you are successful you can sell it for market value and also the bank will forgive the excess amount you owe.