Upgrading Current Home

**deibertine** · 01-12-2010, 11:48 AM

Hi there,
I hope someone here can give us some advise or an idea on how to initiate this process of upgrading our home. We currently own a condo unit (3beds/2baths/1000+sqft/down) which we bought originally for $499,000. But since the downfall of real estate, this value I would imagine has gone down - current foreclosures around my complex were selling $280-300K. We can stick with this condo for now until market rises, but we are now in desperate need of space. We have one child and are expecting another one by summer. With that plus my in laws are coming from out of country to help with the baby.

I was wondering on how we can proceed with this? Should we talk directly to our lender and explain the situation? If so, how? Can we sell this house with it's original price or perhaps short sale it?

The main concern also to us is ruining our credit which we do not want it to happen if possible. We are willing to work just as long as we can get rid of the condo unit and move into a bigger single family home.

We need expert advise please.

Cheers,
DB

**PreviewOrangeCounty** · 01-12-2010, 07:30 PM

Hi DB,

Depending on your current loan balance there may be a few options. I would recommend talking to a knowledgeable Realtor to determine an estimated value of your home and see if you can sell.

If you have negative equity, and do not have the funds to bring in escrow at closing, then your options are limited.

I have had a few clients rent their current home (sometimes with negative cash flow) and then rent another home more suitable.

A short sale has pros and cons, once I again I recommend speaking to an agent who is knowlegable in short sales.

**deibertine** · 01-13-2010, 11:55 AM

Thanks for the advise. We basically pay "interest only" with this home nothing on principal and no down when we purchased. Technically we can walk, but we dont want to do that and ruin our credit.
Both me and my wife's name are in the loan/title so we are going to be affected by doing this.
Renting our current home and moving into a rental sounds like a good choice in current economy, but I guess the question is for how long we ride this market? What are the pros and cons on short selling our place? We would love to hear about this....
Our home now will probably not have the same value as it was before unless we foresee it rise again in the future?

**PreviewOrangeCounty** · 01-13-2010, 02:30 PM

Hi DB,

I understand your hesitation in considering a short sale or loan mod.

Feel free to look at my website below for short sale questions and answers.

**TexasLeaseHouses** · 01-31-2010, 02:01 AM

Originally Posted by deibertine

Thanks for the advise. We basically pay "interest only" with this home nothing on principal and no down when we purchased. Technically we can walk, but we dont want to do that and ruin our credit.
Both me and my wife's name are in the loan/title so we are going to be affected by doing this.
Renting our current home and moving into a rental sounds like a good choice in current economy, but I guess the question is for how long we ride this market? What are the pros and cons on short selling our place? We would love to hear about this....
Our home now will probably not have the same value as it was before unless we foresee it rise again in the future?

I have a HUGE network of buyers all over the country. If you want to give it a shot, PM me your address and I will submit it to them. Also what is your timeline? Are you flexible with your timeline?

Best of luck to you!