Options for selling my house - What are my options?

**J S Machine** · 10-02-2009, 01:33 PM

Hello all.

I found this forum searching for realtor advice. I am a home owner, and have been since Nov. of 2006. I have a very nice home in a nice neighborhood. My house was built in 1998, and the neighborhood is one of the nicest in the city.

I was recently married, and my wife and I had a little girl in January of this year. She is 8 months old now.

My wife and I both have really good jobs, but we feel we have reached a point in our lives where the house mortgage payment is just a nuisance. I really like my home, and the neighborhood, but what I don't like is the thought that I won't ever pay it off until I'm about 50. I am 25 now, and I have a 30 year loan.

We want to possibly sell and buy some land to build a smaller house. The land and new house is another issue. All I am concerend with right now are my options for selling.

Here are some numbers. I Purchased for $132,500 for the house, and I did so with a 100% financed loan at 6.625%. I have paid in roughly $36K in the last three years ($1K a month) and the last time I looked the balance was at about $129K. I know that most realtors charge a fee to sell, and I really want to go this route and help a realtor out with the sale and all, but I don't know that I will have the money to pay the commission they charge.

This brought on the idea of selling myself, but from what I hear this is just a nightmare. We don't have to get out of the house right away, but I do want to sell it soon if possible. I know that there are alot of issues and legal things that I don't know, and I need the help of a real estate lawyer or a realtor.

We are pretty much strapped for cash, I have no savings, and whatever ends up hapenning will have to be done without too much money involved (if possible). I'm not trying to make any money (obviously this won't happen) off of the sale, I'm just trying to get out from under the house.

I have read about selling "short" and I figured this might be an only option. Another question I have is that in this scenario, will it ruin my credit, or will I just owe some money that I will have to keep paying until paid off? I want to keep a good credit rating.

If you have any advice that you are willing to offer, I am all ears. I don't really know anything at all about how this works, and I just want to do what is best for my family - and for now that means getting out from under a steep house payment and into something more affordable.

Another thing that someone mentioned around the block from me is that when buyers go to get a loan, the bank or lending institution base their loan value on the median value of similar houses that have sold. Also included in this mix are foreclosures. So, in other words, the value that they would lend comes down considerably because of those. I sure hope this doesn't hurt me.

Thank you for your input.

**J S Machine** · 10-03-2009, 04:17 AM

What are you spam or something??

**Chrisopher Moltisanti** · 10-03-2009, 06:12 AM

[FONT=Calibri][SIZE=3]Well, if you want to move man, you gotta do what you gotta do. 1) A Realtor earns his income by charging you a broker

**SearchTheJungle** · 10-03-2009, 06:41 AM

I'm not a real estate agent, so I can't help you there, but here's a few thoughts.

You've just gone through two of the most stressful events a person can have in their lives - getting married, and having your first child.

I don't know where selling a house ranks in terms of stress, but from my experience, it has to be in the top ten.

It sounds like you live in a nice neighborhood with a reasonable mortgage payment. If you sold your house and had to rent, how much would it really save you each month? At age 25, a mortgage may seem like a millstone around your neck, but if you can afford the payment, I wouldn't get too stressed about it. You have to live somewhere.

Bottom line: You don't need anymore change or stress in your life right now. Commit to staying in your house for 5 years from the date of purchase, then consider moving if you still want to.

You also mention having no savings - you have to start working on that problem now.

Most people don't change their situations by making one REALLY BIG change - it happens over time by taking a lot of SMALL STEPS. If you REALLY want to start saving money, here are a few small steps to take:

1. Sign up for your employer's 401K plan. You'll never see the money, so you won't spend it (BTW, borrowing against a 401K is generally not wise).

2. Drink water when you go out to a restaurant.

3. Take your lunch to work.

4. Buy a thermos and bring your own coffee.

5. If you own a car and you're making payments, sell it and buy something cheaper for cash (BTW, never buy a new car).

6. If you drink alcoholic beverages, cut it back some, and never at a restaurant or bar - it costs way too much.

7. A lot of people like to "go shopping". If you shop, you will spend money, so find something else (free) to do. You're young and newly married - enough said.

8. Get on a budget.

9. Cut up your credit cards. Carry one for emergency.

10. Never have more than $5 in your wallet. If you have it, you will spend it.

Good luck.

**markbrian** · 10-03-2009, 09:15 AM

I would suggest talking with several local Realtors to perform a CMA to see if it is possible to sell your home. We cannot say since real estate is local, and only a local expert in your market can help regarding the current market value.

If you did sell, and moved to a smaller home, what will happen if/when you have another child or 2? And also, are the schools where you live now the preferred schools for your child?

I would see about refinancing to get a more comfortable monthly payment and stay where you are since you say it is a nice home in a nice neighborhood. Sure not having it paid for until you are in your 50s sounds bad, until you consider after 50 you will not have a house payment. Or you could rent for the rest of your life and always have a payment.

I would research deeply into short sales because they can and will affect your credit. Not as bad as a foreclosure, but still it will hurt your credit. Beware of scam artists that prey on people regarding loan modifications & short sales.

**J S Machine** · 10-03-2009, 11:53 AM

Originally Posted by R3450N

Chrisopher has answered all

from this we may conclude that is thought wise before buying a house

sebelum sebuah masalah itu datang cobalah untuk menghindarinya terlebih dahulu

bisnis perumahan bukanlah bisnis mudah

What language do you speak

**J S Machine** · 10-03-2009, 11:55 AM

Originally Posted by markbrian

I would suggest talking with several local Realtors to perform a CMA to see if it is possible to sell your home. We cannot say since real estate is local, and only a local expert in your market can help regarding the current market value.

If you did sell, and moved to a smaller home, what will happen if/when you have another child or 2? And also, are the schools where you live now the preferred schools for your child?

I would see about refinancing to get a more comfortable monthly payment and stay where you are since you say it is a nice home in a nice neighborhood. Sure not having it paid for until you are in your 50s sounds bad, until you consider after 50 you will not have a house payment. Or you could rent for the rest of your life and always have a payment.

I would research deeply into short sales because they can and will affect your credit. Not as bad as a foreclosure, but still it will hurt your credit. Beware of scam artists that prey on people regarding loan modifications & short sales.

If I can get out of the situation I'm in I will have saved enough money in about 5 years to build a house myself. I never said anything about renting, and I don't intend to ever do that. I would never rent, that is throwing money away.

**Nick Brian** · 10-03-2009, 07:27 PM

Thanks to Chrisopher Moltisanti. Your answer was very helpful. Hope it's helpful to others in this forum.

Talk to local realtors. Based on your area it'd be effective and precise. And those suggestions actually matter.

**mthizon** · 12-11-2009, 10:03 PM

If you are under water on your home, consider a short sale. Some realtors will not even consider doing business with you unless you can prove some sort of hardship. There are many short sale and loan modification companies out there but beware of any that require any up front cost. If your interested in a short sale in CA, let me know. I work for an investment company that helps homeowners with short sales. They do it for free and the company does all the negotiating with the lenders. Here's my email if you ever need help with short sales.
Maria

**markbrian** · 12-12-2009, 06:35 AM

J S Machine, I suggest checking out Making Home Affordable, it is the government website about getting a loan modification. Please pay attention to the section that talks about the scam artists that prey on homeowners facing a difficult time.

Also some changes have been made regarding short sales recently. To check out the latest please about the Home Affordable Foreclosure Alternatives.

I mentioned renting in my earlier post because after you do a short sale, you will need to live somewhere and renting may be the only option.

Good luck with the situation you are facing and I wish you the best.